Associated enterprises rule enforces arm's length adjustments and mandates corresponding tax relief through competent authority consultation. Article 9 mandates arm's length adjustments for associated enterprises where participation in management, control or capital or common persons leads to non-arm's length commercial or financial conditions; profits that would have accrued but for those conditions may be included in taxable profits. When one State taxes such adjusted profits already taxed in the other State, the other State must make an appropriate corresponding adjustment, with due regard to the Agreement and consultation between the competent authorities as necessary.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Associated enterprises rule enforces arm's length adjustments and mandates corresponding tax relief through competent authority consultation.
Article 9 mandates arm's length adjustments for associated enterprises where participation in management, control or capital or common persons leads to non-arm's length commercial or financial conditions; profits that would have accrued but for those conditions may be included in taxable profits. When one State taxes such adjusted profits already taxed in the other State, the other State must make an appropriate corresponding adjustment, with due regard to the Agreement and consultation between the competent authorities as necessary.
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