The Discussion Draft conflates these two very different situations without carefully delineating between them and addressing how the arm's length principle
may apply in each case.
The arm's length principle
is found in Article 9 of the OECD Model Tax Convention.
In international tax law, the arm's length principle
states that multinational enterprises should carry out controlled transactions at arm's length prices, or prices which associated enterprises would have agreed to if they had made a comparable transaction on the open market rather than the controlled transaction that was in fact made in order that taxation may be levied in relation to the hypothetical "normal" transaction.
The authoritative statement of the arm's length principle
, expressed in the worst sort of legalese, is found in paragraph 1 of Article 9 of the OECD Model Tax Convention, which provides:
Nevertheless, despite the differences observed in transfer pricing regulations in 19 selected countries the arm's length principle
, as set out in the OECD's Guidelines, is practically always the starting point (Fris & Gonnet, 2006).
But as material subsequently released to the Western Mail under the terms of the Freedom of Information Act made clear, Mr Pugh's real objection to Mr Davies was not that he was preventing poor people from attending theatrical performances (which he wasn't), but that he had strongly defended the arm's length principle
the definition of the arm's length principle
that forms the basis for determining transfer prices;
As the arm's length principle
underlies the transfer pricing regulations of most tax jurisdictions, global documentation provides a consistent and effective solution that can be efficiently prepared.
India - New Transfer Pricing Rule Allows Use of 'Other Method' for Determining Arm's Length Principle
TEI commends the OECD for posing questions about experiences and best practices in applying transactional profit splits to further the overall goal of the BEPS project with respect to the arm's length principle
to ensure transfer pricing outcomes are in line with value creation.
the arm's length principle
persisted to become the primary
Recommendations on Third Term Culture:The arm's length principle
in art's funding to be strengthened, to ensure that any direct grants made by Ministers are made via processes that are no less open than those operated by Assembly Sponsored Public Bodies.
The topics covered include the application of the arm's length principle
to intangible asset transactions; intangible asset valuation and transfer; global formulary apportionment; transfer pricing documentation requirements; and resolution of transfer pricing disputes.
A correct application of the arm's length principle
commands first an understanding of the value drivers of the group as a whole (a holistic approach) and the relevant risks involved from both a short- and longer-term perspective, as well as how responsibility for those risks is shared among the participants.
He suggests that I, as the Shadow Minister for Culture, am undermining the arm's length principle
that separates the arts from politics.