A Company I work for is providing services to a client who owns 2 companies, investment and developer.
My company invoices the investment co and ( presumably) funds are transferred, we then issue a credit note for the same amount to the developer co.
It appears to me that money is merely being transferred from the investment co to the developer co( owned by the same person) with the company I work for acting as a conduit.
Is this legal?
I am not an accountant so I may have misunderstood the meaning of " credit note".
My company invoices the investment co and ( presumably) funds are transferred, we then issue a credit note for the same amount to the developer co.
It appears to me that money is merely being transferred from the investment co to the developer co( owned by the same person) with the company I work for acting as a conduit.
Is this legal?
I am not an accountant so I may have misunderstood the meaning of " credit note".