Arm's Length Transaction


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Related to Arm's Length Transaction: Arm's length price

Arm's Length Transaction

A transaction in which the buyer and the seller have no significant, prior relationship. In an arm's length transaction, neither party has an incentive to act against his/her own interest. That is, the seller seeks to make the price as high as he/she can, and likewise the buyer seeks to make it as low as he/she can. The negotiations for an arm's length transaction result in the arm's length price, which is almost always close to the market value of the asset being sold. The term is often used in real estate transactions because family members often sell property to each other at something other than the arm's length price.
References in periodicals archive ?
Considerable concern has been expressed about certain aspects of the new rules, including the authority accorded Revenue Canada to redetermine the nature of transactions out of step with typical arm's length transactions. Also attracting attention is the expectation that taxpayers be prepared to explain and justify -- even base -- their transfer pricing with reference to documented functional analysis and a record of how pricing was established with reference to relevant data, the application of transfer pricing methodology, and corporate strategies and policies.
The transaction is an arm's length transaction and Fura is not paying any finder's fees in connection therewith.
The transaction is an arm's length transaction for the purposes of the policies of the TSX Venture Exchange and Fura has not paid any finder's fees relating to the transaction.
The acquisition is an arm's length transaction and is expected to constitute a Reactivation Transaction under the rules of the Exchange.
The transaction is an arm's length transaction and will constitute a reverse takeover as defined by the policies of the TSX Venture Exchange.
The Montreal acquisition is an arm's length transaction.
The Sentinel acquisition is an arm's length transaction. It was announced
The Montreal acquisition is an arm's length transaction. The purchase price for the Montreal acquisition in the amount of USD 8m (USD 6m) subject to adjustments, was paid with funds on hand.
The agreement is an arm's length transaction and no finder's fees will be paid.
The transaction is an arm's length transaction and there are no material relationships and conflicts between the parties.