Arm's length principle requires corresponding adjustment when associated enterprises' transfer pricing alters taxable profits across jurisdictions. Where enterprises are related by participation in management, control or capital and conditions between them differ from those between independent enterprises, profits that would have accrued but for those conditions may be included in an enterprise's taxable profits and taxed. If one Contracting State taxes such included profits that have also been taxed in the other State, that other State shall make an appropriate adjustment to its tax; MLI Article 17 replaces the prior provision and requires due regard to the Convention and consultation between competent authorities for corresponding adjustments.
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.
Arm's length principle requires corresponding adjustment when associated enterprises' transfer pricing alters taxable profits across jurisdictions.
Where enterprises are related by participation in management, control or capital and conditions between them differ from those between independent enterprises, profits that would have accrued but for those conditions may be included in an enterprise's taxable profits and taxed. If one Contracting State taxes such included profits that have also been taxed in the other State, that other State shall make an appropriate adjustment to its tax; MLI Article 17 replaces the prior provision and requires due regard to the Convention and consultation between competent authorities for corresponding adjustments.
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