International transaction characterisation of domestic divestment of support services business rejected; transaction between resident associated enterprises not deemed international, appeal allowed

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....The dispute concerns whether a domestic divestment of a support services business between two resident associated enterprises can be treated as an international transaction or a deemed international transaction under transfer pricing Chapter X. The tribunal reasoned that section 92B(2) requires a transaction with a person other than an associated enterprise, so a transaction between two AEs does not satisfy that statutory gateway; the respondent's reliance on substance over form and alleged prior non-resident influence was rejected as immaterial to the statutory prerequisite. Consequently, section 92B(2) did not apply and the transaction was not a deemed international transaction, allowing the appeal.....