Disguised sales refer to transactions that appear to be sales on the surface, but in reality, involve the transfer of assets between related parties for purposes other than a true sale. This can include situations where the transfer is made at a price that does not reflect the fair market value, or where the transfer is made with the intention of avoiding tax liabilities. These disguised sales can be used to manipulate financial statements and deceive investors, making them a deceptive and potentially illegal practice.