Define: Arm’s Length Basis

Arm’s Length Basis means a transaction between two parties without conflicting interests, conducted as unrelated entities.

Arm’s Length Basis means a transaction between two parties without conflicting interests, conducted as unrelated entities.

Relevant Circumstances

  • When parties want to evidence a transaction is on commercial terms
  • If transfer pricing rules require arm's-length consideration
  • Where related-party deals must be benchmarked against independent comparables

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