Risk Level: Critical
Related Party Loan Oversight
“Is your interest-free loan to a sister company in Mumbai a tax time bomb?”
The Scenario
A family office provides an interest-free 2 million AED loan to a related mainland entity without a formal 'Arm's Length' study.
Statutory Penalty
Re-characterization of income by the FTA, plus administrative fines for lack of Transfer Pricing Master/Local File documentation.
Reference: Article 34 (Arm’s Length Principle)
The Arakan Fix
Arakan Forensic AI automatically identifies 'Connected Person' transactions and triggers a Transfer Pricing documentation workflow.
- Real-time Monitoring
- Audit-Ready Logs
- Statutory Mapping