Arm's length principle: non-arm's-length cross-border transactions may be adjusted and taxed, with corresponding tax adjustments required. Article 9 applies the arm's length principle to related-party transactions: where conditions between related enterprises differ from those between independent enterprises, profits that would have accrued but for those conditions may be included in taxable profits and taxed. The Article also mandates a corresponding adjustment by the other Contracting State when profits so included have been charged to tax there, with consultation between competent authorities to determine appropriate adjustments and account for other Agreement provisions.
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.
Arm's length principle: non-arm's-length cross-border transactions may be adjusted and taxed, with corresponding tax adjustments required.
Article 9 applies the arm's length principle to related-party transactions: where conditions between related enterprises differ from those between independent enterprises, profits that would have accrued but for those conditions may be included in taxable profits and taxed. The Article also mandates a corresponding adjustment by the other Contracting State when profits so included have been charged to tax there, with consultation between competent authorities to determine appropriate adjustments and account for other Agreement provisions.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
