Hi All, hopefully someone can confirm my understanding.
Company A owns Company B 100% - any loans written off between the two are written back so no tax relief/payable therefore tax neutral - is this the same for balances between the two which relates to goods/services provided between the two rather than loans?
If company A only owns 10% of the shares of Company B - how are the transactions referred to above dealt with?
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Why are these loans not settled in cash?
If I was the majority shareholder in company B I would be annoyed.