The State of Bail Bonds in Terms of Tax Laws
Companies use credit from domestic and foreign financial institutions in order to meet their financing needs. In the loans they use, they represent the related companies as guarantors. In this article, whether the related bail relationship can be considered as a financing service, whether the implicit profit distribution is realized within the scope of the transfer pricing in terms of the Corporate Tax Law; Furthermore, in terms of the Value Added Tax Law, it will be discussed whether this financing service is subject to VAT. 1. Introduction One of the most important problems in the loans used by banks in order to meet the financing needs of the companies is to provide guarantees. Collateral may be cash, securities, real estate or personal surety. Banks want as much collateral as possible from companies that use credit to minimize the risk of repayment of their loans. In this case, companies, especially group…