Arm's Length Transaction

(redirected from Arms-Length)

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.

Mentioned in ?

arm's-length transaction

References in periodicals archive ?

It is the intent of the request for proposals to provide professional data collection services to collect at-the-time-of-sale data on all arms-length sales within Steuben County of approximately 800-900 sales per year.

Professional Data Collection Services

The committee heard a company would be set up to deliver the franchise, while an arms-length firm would also be established to work on the South Wales Metro.

Hart outlines not-for-profit rail plan

The changes could see hundreds of council employees shifted into arms-length organisations which would then provide services, as is done by Cardiff Bus.

Council slammed over service talks

1.482-2(b) cost safe harbor and to bring the existing rules more in line with the arms-length standard.

Controlled services transactions

The basic idea is that the IP is licensed to the various foreign operating companies ("OPcos") in exchange for an arms-length royalty.

Foreign tax strategies can be boon to multinationals: opportunities abound for multinational companies to take advantage of low-tax foreign jurisdictions to structure tax-advantaged programs. A number of countries provide major incentives to locate within their borders

Each of Gateshead Council's 26,442 tenants and leaseholders will receive a questionnaire this week, asking if they want to support the setting up of an arms-length group to manage council housing in the future.

Plea to support pounds 232m scheme

has entered into an arms-length agreement to acquire 100 per cent of the issued and outstanding shares of Heath & Sherwood Drilling Inc., a Kirkland Lake area company.

Cabo acquires company. (Mining and Forestry: News)

Moreover, to the extent the guidelines require the disclosure and measurement of returns for members that are not a party to a controlled transaction that is being tested for comparability under the arms-length principle, we question whether the documentation requirement is enforceable under the Canadian, U.S., or the other PATA countries' rules.

Pacific Association of Tax Administrators' transfer pricing documentation package: September 5, 2002

The Ontario Family Health Network (OFHN) was created in March 2001 as an arms-length agency that provides family physicians with information, administrative support and technology funding to support the voluntary creation of Family Health Networks in their communities.

Ontario's first family health network opens. (Romanow Commission)

For example, Fitter recommends that co-op boards review vendor lists twice a year to insure that only arms-length relationships exist.

Accounting firm offers list to avoid management abuses

The contractor shall collect data inventory, pictures and verify sales information for all arms-length sales that occur within Steuben County for the length of this agreement.

Professional Data Collection Services

Unison, which has almost 4,000 members at Cardiff council, is also opposed to proposals for arms-length companies being set up to operate some authority services.