The price at which two unrelated and non-desperate parties would agree to a transaction. This is most often an issue in the case of companies with international operations whose international subsidiaries trade with each other. For such companies, there is often an incentive to reduce overall tax burden by manipulation of inter-company prices. Tax authorities want to insure that the inter-company price is equivalent to an arm's length price, to prevent the loss of tax revenue.
Related information about arm's length price:
- What is arm's length price? - InvestorWords.com
Definition of arm's length price: The price at which two unrelated and non- desperate parties would agree to a transaction. This is most often an issue in the case ...
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An arm's-length price for a transaction is therefore what the price of that transaction ... For commodities, determining the arm's-length price can sometimes be as ...
- Arm's length price - Financial Dictionary - The Free Dictionary
The price at which a willing buyer and a willing unrelated seller would freely agree to transact or a trade between related parties that is conducted as if they were ...
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In the global business environment today, it is not unusual for subsidiaries of larger companies to conduct business transactions with one another, as if they are ...
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Definition of arm's length price: A type of transaction whereby a willing seller and a willing buyer who have no conflicts of interest with regard to the transaction ...
- Transfer pricing - Wikipedia, the free encyclopedia
In addition, most systems recognize that an arm's length price may not be a particular price point but rather a range of prices. Some systems provide measures ...
- India-New rules of “other method” for arm's length price | KPMG ...
May 31, 2012 ... The Central Board of Direct Taxes (CBDT) has issued guidance prescribing the application of an “other method” rule for computing the arm's ...
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May 15, 2012 ... The Hyderabad Bench of the Income-tax Appellate Tribunal disagreed with the findings of the Assessing Officer who had denied a “tax holiday” ...