Associated enterprises principle permits allocation of omitted profits where related-party terms differ from arm's length. Where enterprises of different Contracting States are associated through participation in management, control or capital, or share the same persons in those roles, commercial or financial conditions that diverge from those between independent enterprises permit tax authorities to include in an enterprise's profits any amounts that would have accrued but did not due to such non arm's length conditions, thereby allowing taxation to be adjusted to reflect arm's length outcomes.
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 principle permits allocation of omitted profits where related-party terms differ from arm's length.
Where enterprises of different Contracting States are associated through participation in management, control or capital, or share the same persons in those roles, commercial or financial conditions that diverge from those between independent enterprises permit tax authorities to include in an enterprise's profits any amounts that would have accrued but did not due to such non arm's length conditions, thereby allowing taxation to be adjusted to reflect arm's length outcomes.
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