Associated enterprises rules require arm's length profit adjustments with corresponding tax relief through mutual adjustment. Article 9 establishes that where related enterprises or enterprises under common control enter into conditions differing from arm's length terms, profits that would have accrued but for those conditions may be included in taxable profits and taxed accordingly. Where one State taxes such adjusted profits which have been charged to tax in the other State, the other State shall make an appropriate corresponding adjustment, taking account of the Agreement's provisions and consulting the competent authorities if 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 rules require arm's length profit adjustments with corresponding tax relief through mutual adjustment.
Article 9 establishes that where related enterprises or enterprises under common control enter into conditions differing from arm's length terms, profits that would have accrued but for those conditions may be included in taxable profits and taxed accordingly. Where one State taxes such adjusted profits which have been charged to tax in the other State, the other State shall make an appropriate corresponding adjustment, taking account of the Agreement's provisions and consulting the competent authorities if necessary.
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