Transfer pricing adjustments: reallocate and tax profits where related-party conditions deviate from arm's-length terms. Where related enterprises make or impose conditions differing from those between independent enterprises, profits that would have accrued but for those conditions may be included and taxed in the enterprise entitled to them; if one State taxes such adjusted profits, the other State shall make an appropriate adjustment after competent-authority consultation, except where final proceedings have led to penalty findings for fraud, gross negligence or wilful default.
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.
Transfer pricing adjustments: reallocate and tax profits where related-party conditions deviate from arm's-length terms.
Where related enterprises make or impose conditions differing from those between independent enterprises, profits that would have accrued but for those conditions may be included and taxed in the enterprise entitled to them; if one State taxes such adjusted profits, the other State shall make an appropriate adjustment after competent-authority consultation, except where final proceedings have led to penalty findings for fraud, gross negligence or wilful default.
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 
