arm's length

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Related to Arm's length principle: Arms length
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Noun1.Arm's length - a distance sufficient to exclude intimacyarm's length - a distance sufficient to exclude intimacy
distance, length - size of the gap between two places; "the distance from New York to Chicago"; "he determined the length of the shortest line segment joining the two points"
References in periodicals archive ?
This approach is more consistent with the arm's length principle than the ex post approach because it is used by unrelated parties in concluding contracts.
Fears over the survival of the at arm's length principle between the National Assembly and the arts Council were raised last year when Mr Morgan said the Welsh Development Agency, the Wales Tourist Board and the post-16 education and training body, Elwa, would be brought under the direct control of the Assembly by spring 2006.
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 principle.
She added, ``The arm's length principle is an important one and the arm of a devolved government will rightly be shorter than that of Westminster.
The OECD Transfer Pricing Guidelines (TPG) for Multinational Enterprises and Tax Administrations provide internationally accepted guidance on the application of the arm's length principle set out in Article 9 of the OECD and UN Model Tax Conventions.
This is because the arm's length principle provides the closest approximation of the open market where goods and services are transferred between associated enterprises.
He said the proposed revisions generally clarify the application of the guidelines and "should enhance the efficacy of the arm's length principle for cross-border transactions," thereby reducing "controversies between taxpayers and tax administrations about the proper arm's-length price (or results) in specific cases.
Based on the experiences of taxpayers and tax administrations, the proposed revisions generally clarify the application of the guidelines and should enhance the efficacy of the arm's length principle for cross-border transactions generally and, hence, reduce controversies between taxpayers and tax administrations about the proper arm's length price (or results) in specific cases.
One objective of the OECD's report is to discuss the extent to which a reallocation of profits is consistent with the arm's length principle (under Article 9 of the Model Tax Convention) and more generally how the arm's length principle applies to business restructurings.
For example, as indicated in Chapter I of these Guidelines, the application of the arm's length principle would take into account, inter alia, the contractual terms and economic circumstances particular to the CCA, e.
The discussion draft proposes to adopt the "functionally separate entity" approach as the authorized OECD approach because it is "simpler, more administrable, and more consistent with the understanding of the arm's length principle.
The first stated principle is the "need to make reasonable efforts, as determined by each PATA member tax administration, to establish transfer prices in compliance with the arm's length principle.