Associated enterprises transfer pricing: non arm's length conditions allow profit reallocation and require corresponding cross border tax adjustments. Article 9 permits reallocation of profits where related enterprises transact on terms differing from those between independent enterprises: profits that would have accrued under arm's length conditions may be included in taxable income and taxed. Where one State taxes such included profits that have been charged in the other State, that other State shall make an appropriate adjustment, taking into account the Convention and following consultation between the competent authorities.
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 transfer pricing: non arm's length conditions allow profit reallocation and require corresponding cross border tax adjustments.
Article 9 permits reallocation of profits where related enterprises transact on terms differing from those between independent enterprises: profits that would have accrued under arm's length conditions may be included in taxable income and taxed. Where one State taxes such included profits that have been charged in the other State, that other State shall make an appropriate adjustment, taking into account the Convention and following consultation between the competent authorities.
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