cryptohunter
Active member
- PPF Points
- 1,460
The principle of maintaining arm's length in offshore transfer pricing guarantees that exchanges between linked organizations are carried out as if they were unconnected, upholding fairness and thwarting tax evasion. It obligates pricing to correspond with transactions between unrelated parties, encouraging transparency and harmonizing profits with economic essence. Offshore jurisdictions that adhere to this principle contribute to global tax norms and equitable allocation of profits among linked organizations.