at arm's length

For the term "at arm's length" the glossary states the following:

Generally, transactions between related parties are not considered to be at arm's length. However, in Davis, the U.S.

Whatever the contract's term, it needs to be negotiated at arm's length with an unrelated party at market rates.

As a result, many of the firewalls overlap the restrictions of section 23B, which, as I noted, requires interaffiliate transactions to be at arm's length and on market terms but also prohibits a section 20 affiliate from representing that an affiliated bank is responsible for its obligations and prohibits a bank from purchasing certain products from a section 20 affiliate.

(4) Specifically, "restrictive covenant, of a taxpayer, means an agreement entered into, an undertaking made, or a waiver of an advantage or right by the taxpayer (other than an agreement or undertaking for the disposition of the taxpayer's property or for the satisfaction of an obligation described in section 49.1 that is not a disposition), whether legally enforceable or not, that affects, or is intended to affect, in any way whatever, the acquisition or provision of property or services by the taxpayer or by another taxpayer that does not deal at arm's length with the taxpayer."

1.482-9T(c) to evaluate whether the amount charged in a PCT is determined at arm's length by reference to the average market capitalization of a controlled participant (PCT payee) whose stock is regularly traded on an established securities market.

As an alternative grounds for its decision, the Tax Court examined whether the agreement was comparable to similar arrangements entered into at arm's length under the Sec.

If any one or more of the tracked properties are not owned by the NRE, the only exception from tracking entity status is if it is reasonable to conclude that any investment property owned by the NRE (or an entity that does not deal at arm's length with the NRE), or substituted property, could be used to satisfy the right to receive the tracked property payment.

The new regulations' guiding principle is that transactions between related entities should have the same results as those between two unrelated entities dealing at arm's length. To that end, the regulations list various pricing methods that may be used.

True taxable income is determined using the standard of a taxpayer dealing at arm's length with an unrelated party.

We invite Revenue Canada to comment on whether the transfer-pricing provisions in section 247 of the Act will apply with respect to a long-term agreement between parties that, at the time of entering into such agreement, are at arm's length, but that subsequently become related.

1.482-1(a)(2) authorizes the IRS to "make allocations between or among the members of a controlled group if a controlled taxpayer has not reported its true taxable income." In determining true taxable income, "the standard to be applied in every case is that of a taxpayer dealing at arm's length with an uncontrolled taxpayer" (Regs.

The onus is on the tax authority to prove whether the TP is at arm's length.

These provisions allowed for adjustments to conform to what "would have been reasonable in the circumstances if the non-resident person and the taxpayer had been dealing at arm's length...for the purpose of computing the taxpayer's income...." Although Revenue Canada has consistently characterized this formulation of the arm's length principle as a mere reiteration of the OECD version, and accordingly insisted on the application of the typical methodological analyses in relation to transactional pricing (and, additionally, presumed that pricing respectful of this principle would reflect "fair market value"), it is not clear that this is what those provisions required.

The New York City Tax Appeals Tribunal affirmed that intercorporate transactions between various corporate groupings (e.g., trademark, management services, mortgage financing and investment loan companies) were sufficiently at arm's length and nondistortive, so as not to require forced combined reporting.