Intragroup Loan
/ˌɪntrəˈɡruːp loʊn/
Definitions
- (n.) A loan extended by one entity within a corporate group to another entity in the same group, often used for internal financing and tax planning.
The parent company provided an intragroup loan to its subsidiary to fund its expansion.
Forms
- intragroup loan
- intragroup loans
Related terms
See also
Commentary
Intragroup loans require careful documentation to satisfy tax authorities and avoid recharacterization as capital contributions or dividend distributions.
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