The TP Bylaws state that the arm's length
range is a range of acceptable results such as prices, margins or profit shares produced by applying the most appropriate transfer pricing method.
For the term "at arm's length
" the glossary states the following:
These should cover guidelines in ensuring arm's length
terms, management of conflicts of interest, materiality thresholds and limits, whistle blowing mechanisms, and restitution of losses and other remedies for irregular deals.
"We have to hold these arm's length
companies to account."
To determine whether employees are not dealing at arm's length
with their employers, the CRA considers the circumstances of their employment.
For these reasons, the use of hindsight by tax authorities in revaluing or re-pricing the terms of a contract is fundamentally at odds with the arm's length
* Moreover, intra-firm exports are a complement to arm's length
affiliate sales and hence likely to respond in the same way to cultural distance as such sales.
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 court rejected the IRS's contention that the regulations effectively supplanted the role of independent comparisons by defining arm's length
as including "all costs." Instead, the court concluded that the intent of the regulations is that the arm's-length standard applies in all cases, including cost-sharing agreements.
In addition, finder's fees may be payable to arm's length
third parties upon the completion of the acquisition.
That resale price is reduced for gross margin and eventually corrected for the costs associated with the purchase of the product, thus the balance incurred is the arm's length
Light the firework at arm's length
with a taper and stand well back.