Assume a group of companies all under common ownership incorporated in a tax-free offshore jurisdiction.
The majority of the group companies have become dormant with only 2 actively trading.
Large inter-company balances have accumulated in all companies and for the the dormant companies are their only assets/liabilities.
It is proposed to write-off all inter-co balances (which are eliminated on consolidation anyway).
Am I correct in thinking that there are no accounting regulations that would prevent such write-offs?
Thank you