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 ?
The Proposals also regrettably depart from the arm's length principle, as the OECD notes in the Consultation Document, in favor of an approach akin to global formulary apportionment.
They appear to be higher than what independent companies negotiating on market terms would have agreed between themselves in accordance with the arm's length principle. In particular, a preliminary analysis of the companies' activities found that: Nike European Operations Netherlands BV and Converse Netherlands BV have more than 1,000 employees and are involved in the development, management and exploitation of the intellectual property.
Given the magnitude of related-party trade and the desire to minimize disagreement about what the proper transfer prices should be, at least in the tax world, most developed countries have agreed to a common standard, the "arm's length principle." The arm's length principle is found in Article 9 of the OECD Model Tax Convention.
Namibia introduced transfer pricing legislation in 2005, aimed at enforcing the internationally accepted arm's length principle in cross-border transactions carried out between connected persons.
This aim could be achieved by setting aside domestic rules and using the new Article 7 of the OECD Model Convention as a paradigm to establish an international consensus for the capital structure of both permanent establishments and subsidiaries in line with the arm's length principle. The main consequence would be that those two entities would be treated alike and would therefore have an appropriate amount of "free" capital in order to support the functions they perform and the assets and risks attributed to them.”
Transfer pricing and the arm's length principle in international tax law.
The separate entity approach leads inexorably to the infamous "arm's length principle" that treats related entities within a single company group as independent enterprises operating in open markets.
But implementing the arm's length principle is easier said than done.
Under such circumstances the arm's length principle is preferred (Sekulic Grgic, 2005), according to which efforts are being made to determine a price agreed between independent subjects within a same or comparable transaction.