Associated enterprises transfer-pricing rules allow reallocation of income when conditions diverge from arm's-length terms. Article 9 treats enterprises as associated where one participates in the management, control or capital of the other or the same persons participate in ... Summary
Associated enterprises transfer-pricing rules allow reallocation of income when conditions diverge from arm's-length terms.
Article 9 treats enterprises as associated where one participates in the management, control or capital of the other or the same persons participate in both. If conditions between them differ from arm's-length terms, income that would have accrued under arm's-length conditions may be included in and taxed in the appropriate enterprise. The other State must make an appropriate adjustment if it has taxed that income, with competent authority consultation. Changes to income are subject to domestic time-limits and a five-year outer limit, except for fraud, wilful default or neglect.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.