Associated enterprises transfer pricing adjustments allow inclusion of notional profits and require corresponding tax adjustment by the other State. Where related enterprises apply conditions that differ from those between independent enterprises, any profits that would have accrued but for those conditions may be included in the profits of the affected enterprise and taxed accordingly. If one State taxes such reallocated profits which have also been taxed in the other State, that other State shall make an appropriate adjustment where it considers it justified, with regard to the Agreement's provisions and after consultation between 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 transfer pricing adjustments allow inclusion of notional profits and require corresponding tax adjustment by the other State.
Where related enterprises apply conditions that differ from those between independent enterprises, any profits that would have accrued but for those conditions may be included in the profits of the affected enterprise and taxed accordingly. If one State taxes such reallocated profits which have also been taxed in the other State, that other State shall make an appropriate adjustment where it considers it justified, with regard to the Agreement's provisions and after consultation between competent authorities if necessary.
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 
