TPG2010 Chapter IX paragraph 9.171

Category: TPG2010 Part IV: Recognition of the actual transactions undertaken | Tag: , ,
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The second circumstance in paragraph 1.65 explicitly refers to the situation where the arrangements adopted by the associated enterprises “differ from those which would have been adopted by independent enterprises behaving in a commercially rational manner…” Consistent with paragraph 9.163, tax administrations should not ordinarily interfere with the business decisions of a taxpayer as to how to structure its business arrangements. A determination that a controlled transaction is not commercially rational must therefore be made with great caution, and only in exceptional circumstances lead to the non-recognition of the associated enterprise arrangements.






Related Guidelines

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