Arm's length principle: permit tax adjustments where associated enterprises' conditions shift profits between related enterprises. Article 9 provides that where enterprises of the two Contracting States are associated through participation in management, control or capital, or common persons participate in both, and conditions between them differ from those between independent enterprises, any profits which would have accrued but for those conditions may be included in the profits of the relevant enterprise and taxed accordingly as a transfer-pricing adjustment to reflect arm's-length results.
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Provisions expressly mentioned in the judgment/order text.
Arm's length principle: permit tax adjustments where associated enterprises' conditions shift profits between related enterprises.
Article 9 provides that where enterprises of the two Contracting States are associated through participation in management, control or capital, or common persons participate in both, and conditions between them differ from those between independent enterprises, any profits which would have accrued but for those conditions may be included in the profits of the relevant enterprise and taxed accordingly as a transfer-pricing adjustment to reflect arm's-length results.
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