Associated enterprises and arm's length profit attribution can be adjusted for tax when related party conditions differ. Article 10 permits inclusion in taxable profits where enterprises with management, control or capital links adopt conditions differing from those between independent enterprises, so that profits that would have accrued but for those conditions may be taxed. Where information is inadequate, each State may exercise statutory discretion or make an estimate of tax liability, but such determinations must, as far as available information permits, accord with the principle of attributing profits as between independent enterprises; amounts so determined may be amended when adequate information is provided.
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 and arm's length profit attribution can be adjusted for tax when related party conditions differ.
Article 10 permits inclusion in taxable profits where enterprises with management, control or capital links adopt conditions differing from those between independent enterprises, so that profits that would have accrued but for those conditions may be taxed. Where information is inadequate, each State may exercise statutory discretion or make an estimate of tax liability, but such determinations must, as far as available information permits, accord with the principle of attributing profits as between independent enterprises; amounts so determined may be amended when adequate information is provided.
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