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Doesn't USA have the tax concept of "transfer pricing"? Musk (who is definitely the beneficial owner of Twitter and probably of Tesla too) is providing "free"
by rvba 4y ago
Doesn't USA have the tax concept of "transfer pricing"?
Musk (who is definitely the beneficial owner of Twitter and probably of Tesla too) is providing "free" consulting service of Tesla employees for Twitter -> without an invoice and without tax. (or maybe there will be an invoice?)
In EU that should be taxed (and also invoiced) - with similar prices as a consulting provided by a consulting company that does code reviews. The tax office is interested most in the missing tax of course.
- powerapple 4y agoIs it confirmed that it is "free" consulting service? The article didn't mention anything about it.
- nerdawson 4y ago> Later, people inside the company reported that Tesla engineers were in fact reviewing the code. There’s very little here to make any kind of judgement from. Perhaps they were being paid for some private work outside of their employment. Maybe there’s some kind of arrangement in place to cover the costs of their time. From the outside we simply don’t know.
- bakuninsbart 4y agoQuite sure this is just false, as I've done this in some contexts before, would be great to hear from an eypert. - Consulting pro bono, even during hours on another company should generally be fine, it might just make it more likely to be tax audited.
- bawolff 4y agoI think the key point is whether the companies are at arms length or not, not that it is pro-bono.