Academic literature on the topic 'Arms length principle'

To counteract tax evasion (thin-capitalization), countries across the world including Indonesia begin to apply certain rules. One of the method is to limit the amount of debt of intra-group loan transactions based on the arms length principles. However, the application of this principle to assess the fairness of the loan transaction is not smooth. The unclear set of criteria cause disputes when it is applied. This study analyzes the implementation of the criteria and the relationship among these criteria when they are used simultaneously. The findings of the study initially found that the regulations in Indonesia only adhere to two criterias: the need of debt and debt to equity ratio comparison with its peers. However, in practice, there is another criterion commonly used that is borrowing capacity. Because the regulation concerning these criteria is considered as a guideline and not binding, it is feasible to use all three criteria. When they are applied, it turns out that only the ratio criterion is considered as the most objective and applicable. Nevertheless, the loan between related parties can only be said to fulfill the arms length principle only if all the criteria are met.

The new arms form of radial gate—dendritic arms is introduced for the proper mechanical mechanism, however the stability design is very difficult. According to the stability theory of structure, the stability analysis model of step column with lateral restraints was proposed for dendritic arms, some equations was derived from the principle of minimum potential energy, the practical formulas of buckling bearing capacity and effective length coefficient were provided. According to an example, the accuracy on formulas was verified by finite analysis method.

In the tax audit on companies which involves transfer pricing in their transaction, tax auditor must determine benchmark companies to determine the arms length principle to be met by the companies. This study aims to analyze determinant factors of the profitability of independent manufacturing companies in Asia. Determinant factors of profitability can be used to determine the appropriate comparison companies. The study used two models with Plust net cost margin and return on assets as dependent variables of each model. Whereas, the independent variables used in this study are the ratio of operating revenue / net sales; operating profit; number of employees; payroll; total assets; tangible fixed assets; net working capital, cash and cash equivalent; other assets; geography; and industry. The results show that operating profit; net working capital; cash and cash equivalent and geography influence significantly and have been tested to determine comparator companies in determining the arms length principle.

By surveying SCARA manipulator in the market, the question that the overall length of arms is fixed, which leads its operating range to be relatively fixed, and the manipulator has badly adaptive can be found. Aiming at the problem, a SCARA manipulator whose arms can be replaced quickly had been designed according to the concept of adaptable design, and the principle of replacement arms had been put forward basing on the analysis to the minimum operating radius of manipulator in this paper. Moreover, an adaptable interface for replacing quickly different grippers during the process of production had been designed in the paper.

The most common self-assembly structure for A2B copolymer is the micellar structure with B/A segments being the core/corona, which greatly limits its application range. Following the principle of structure deciding the properties, a reformation in the molecular structure of A2B copolymer is made by appending three segments of a third component C with the same length to the three arms, resulting (AC)2CB 3-miktoarm star terpolymer. A reverse micellar structure in self-assembly is expected by regulating the C length and the pairwise repulsive strength of C to A/B, aiming to enrich its application range. Keeping both A and B lengths unchanged, when the repulsion strength of C to A is much stronger than C to B, from the results of mesoscopic simulations we found, with a progressive increase in C length, (AC)2CB terpolymer undergoes a transition in self-assembled structures, from a cylindrical structure with B component as the core, then to a deformed lamellar structure, and finally to a cylindrical structure with A component as the core. This reverse micellar structure is formed with the assistance of appended C segments, whose length is longer than half of B length, enhancing the flexibility of three arms, and further facilitating the aggregation of A component into the core. These results prove that the addition of a third component is a rational molecular design, in conjunction with some relevant parameters, enables the manufacturing of the desired self-assembly structure while avoiding excessive changes in the involved factors.

Late in 1999 the Commonwealth of Australia's Department of Communications, Information Technology and the Arts released Securing the Future, the final Report of the Major Performing Arts Enquiry chaired by Helen Nugent (commonly referred to as the Nugent Report). The operations of the committee and the findings of the Report occasioned considerable public debate in the Australian arts world in the late 1990s, as the Enquiry solicited and analysed information and opinion on the financial health and artistic practices of thirty-one national major performing arts companies producing opera, ballet, chamber and orchestral music as well as theatre. The Report saw the financial viability of Australian live performance as deeply affected by the impact of globalization, especially by what elsewhere has been called ‘Baumol's disease’ – escalating technical, administrative and wage costs but fixed revenue – which threaten the subsidized state theatre companies of Brisbane, Adelaide and Perth with their relatively small population bases. The structural implementation recommended a considerable financial commitment by Commonwealth and State Governments to undertake a defined period of stabilizing and repositioning of companies. Early in 2000 both levels of Government committed themselves to this funding – in fact increasing Nugent's requested $52 million to $70 million – and to the principle of a strengthened Australia Council dispensing arms-length subsidy. In an economically philistine political environment, these outcomes are a tribute to Nugent's astute use of economic rhetoric to gain at least a symbolic victory for the performing arts sector. In 2000 New Zealand arts gained a similar major injection of funding, while a commissioned Heart of the Nation report, advocating the dilution of the principle of arm's-length funding through the abolition of the national funding organization Creative New Zealand, was rejected by Prime Minister Helen Clark.

The approach to the design and revision of electoral districts in Canada is quite different from that found in the United States, despite the two countries' sharing of the same basic first-past-the-post electoral system. As John Courtney notes in his careful study of the topic, in Canada the emphasis in defining electoral districts, or constituencies or ridings, has been underpinned by concepts such as “community of interest” and “effective representation,” which encompass a wide range of political and social considerations—many local in nature—and which permit substantial deviation from the principle of one person, one vote. At the federal level, the allowable deviation in the size of constituencies can be plus or minus 25% within any given province, with the possibility of even greater variances under special circumstances. At the level of provincial electoral systems, the variances can be even larger, in part due to the fact that in certain provinces the ratio of urban to rural seats is specified in law. At the same time, the actual process of designing and reconfiguring the boundaries of constituencies, in the hands of independent, arm's-length commissions for the past 40 years, has been remarkably free of direct partisan influence. In fact, given the rather tattered state of current Canadian parliamentary democracy, characterized by one-party dominance in the federal parliament and a precipitous decline in voter turnout over the past three elections, the institution of arms-length boundary commissions stands out as something that works well and enjoys broad respect.

Following recent events in Egypt, Libya, Myanmar (Burma) and Tunisia, foreign investors have lodged international claims under investment treaties. Several of these cases follow a common fact pattern. They concern foreign investments acquired from authoritarian governments substantially below market value through transactions that were not arms’ length. Subsequently, new governments sought to renegotiate these contracts and concessions, or to change the regulatory arrangements that govern them. The investors then invoked the protections of an investment treaty. This article draws on political science scholarship on transition. It argues that investment treaties risk constraining the ability of incoming democratic regimes to consolidate their position, and questions the normative justifications for applying the principle of full market value compensation to situations in which investments were not acquired on a full market value basis. These conclusions are relevant to wider debates about the tension between legal stability and political change in international law.

This study reports a general scenario for the out-of-equilibrium features of collapsing polymeric architectures. We use molecular dynamics simulations to characterize the coarsening kinetics, in bad solvent, for several macromolecular systems with an increasing degree of structural complexity. In particular, we focus on: flexible and semiflexible polymer chains, star polymers with 3 and 12 arms, and microgels with both ordered and disordered networks. Starting from a powerful analogy with critical phenomena, we construct a density field representation that removes fast fluctuations and provides a consistent characterization of the domain growth. Our results indicate that the coarsening kinetics presents a scaling behaviour that is independent of the solvent quality parameter, in analogy to the time–temperature superposition principle. Interestingly, the domain growth in time follows a power-law behaviour that is approximately independent of the architecture for all the flexible systems; while it is steeper for the semiflexible chains. Nevertheless, the fractal nature of the dense regions emerging during the collapse exhibits the same scaling behaviour for all the macromolecules. This suggests that the faster growing length scale in the semiflexible chains originates just from a faster mass diffusion along the chain contour, induced by the local stiffness. The decay of the dynamic correlations displays scaling behavior with the growing length scale of the system, which is a characteristic signature in coarsening phenomena.

The Formulary Approach to the Taxation of Transnational Corporations: A Realistic Alternative? Synopsis The central hypotheses of this thesis are: that global formulary apportionment is the most appropriate method for the taxation of transnational corporations (TNCs) in lieu of the present system commonly referred to as the separate accounting/arm's length method; and that it is essential, in order to implement the proposed global formulary model, to create an international organisation which would fulfil, in the taxation field, a role equivalent to that of the World Trade Organisation (WTO) in international trade. The world economy is fast integrating and is increasingly dominated by the activities of transnational enterprises. These activities create a dual tax problem for various revenue authorities seeking to tax gains derived thereon: Firstly, when two or more countries entertain conflicting tax claims on the same base, there arises what is commonly referred to as a double taxation problem. Secondly, an allocation problem arises when different jurisdictions seek to determine the quantum of the gains to be allocated to each jurisdiction for taxation purposes. The traditional regime for solving both the double taxation and the allocation problem is enshrined in a series of bilateral treaties signed between various nations. These are, in general, based on the Organisation for Economic Co-operation and Development (OECD) Model Treaty.1 It is submitted, in this thesis, that while highly successful in an environment characterised by the coexistence of various national taxation systems, the traditional regime lacks the essential attributes suitable to the emerging 'borderless world'. The central theme of this thesis is the allocation problem. The OECD Model attempts to deal with this issue on a bilateral basis. Currently, the allocation problem is resolved through the application of Articles 7 and 9 of the OECD Model. In both instances the solution is based on the 'separate enterprise' standard, also known as the separate entity theory. This separate accounts/arm's length system was articulated in the 1930s when international trade consisted of flows of raw materials and other natural products as well as flows of finished manufactured goods. Such trade is highly visible and may be adequately valued both at the port of departure or at the port of entry in a country. It follows that within this particular system of international trade the application of the arm's length principle was relatively easy and proved to be extremely important in resolving both the double taxation and apportionment problems. Today, however, the conditions under which international trade is conducted are substantially different from those that prevailed until the 1960s. * Firstly, apart from the significant increase in the volume of traditionally traded goods, trade in services now forms the bulk of international exchanges. In addition, the advent of the information age has dramatically increased the importance of specialised information whose value is notoriously difficult to ascertain for taxation purposes. * Secondly, the globalisation phenomenon which gathered momentum over the last two decades has enabled existing TNCs to extend their global operations and has favoured the emergence of new transnational firms. Thus, intra-firm trade conducted outside market conditions accounts for a substantial part of international trade. * Thirdly, further economic integration has been achieved following the end of the Cold War and the acceleration of the globalisation phenomenon. In this new world economic order only TNCs have the necessary resources to take advantage of emerging opportunities. The very essence of a TNC is 'its ability to achieve higher revenues (or lower costs) from its different subsidiaries as a whole compared to the results that would be achieved under separate management on an arm's length basis.'2 Yet, the prevailing system for the taxation of TNCs overlooks this critical characteristic and is therefore incapable of fully capturing, for taxation purposes, the aggregate gains of TNCs. The potential revenue loss arising from the inability of the present system to account for and to allocate synergy gains is substantial. It follows that the perennial questions of international taxation can no longer be addressed within the constraints of the separate entity theory and a narrow definition of national sovereignty. Indeed, in order to mirror the developments occurring in the economic field, taxation needs to move from a national to an international level. Moreover, a profound reform of the system is imperative in order to avoid harmful tax competition between nations and enhance compliance from TNCs. Such a new international tax system needs to satisfy the test of simplicity, equity, efficiency, and administrative ease. To achieve these objectives international cooperation is essential. The hallmark of international cooperation has been the emergence, after World War II, of a range of international organisations designed to facilitate the achievement of certain goals deemed essential by various nations. The need for an organisation to deal specifically with taxation matters is now overwhelming. Consequently, this thesis recommends the creation of an international organisation to administer the proposed system. The main objective of this international organisation would be to initiate and coordinate the multilateral application of a formulary apportionment system which, it is suggested, would deal in a more realistic way with 'the difficult problems of determining the tax base and allocating it appropriately between jurisdictions'.3 The global formulary apportionment methodology is derived from the unitary entity theory. The unitary theory considers a TNC as a single business which, for convenience, is divided into 'purely formal, separately-incorporated subsidiaries'.4 Under the unitary theory the global income of TNCs needs to be computed, then such income is apportioned between the various component parts of the enterprise by way of a formula which reflects the economic contribution of each part to the derivation of profits. The question that arises is whether the world of international taxation is ready for such a paradigm shift. It is arguable that this shift has already occurred albeit cautiously and in very subtle ways. Thus, the latest of the OECD Guidelines on the transfer pricing question provides that 'MNE [Multinational Enterprise] groups retain the freedom to apply methods not described in this Report to establish prices provided those prices satisfy the arm's length principle in accordance with these Guidelines.'5 Arguably, the globalisation process has created 'the specific situation' allowed for by the OECD. This thesis, therefore, explores the relative obsolescence of the bilateral approach to the taxation of TNCs and then suggests that a multilateral system is better adapted to the emerging globalised economy. The fundamental building blocks of the model proposed in this thesis are the following: * First, the administration and coordination of the proposed system is to be achieved by the creation of a specialised tax organisation, called Intertax, to which member countries would devolve a limited part of their fiscal sovereignty. * Second, in order to enable the centralised calculation of TNC's profits, the proposed system requires the formulation of harmonised methods for the measurement of the global profits of TNCs. Therefore, the efforts of the International Accounting Standards Committee (IASC) to produce international accounting standards and harmonised consolidation rules must be recognised and, if needs be, refined and ultimately implemented. * Third, the major function of Intertax would be to determine the commercial profits of TNCs on a standardised basis and to apportion the latter to relevant countries by way of an appropriate formula/formulas. Once this is achieved, each country would be free, starting from its share of commercial profits, to determine the taxable income in accordance with the particular tax base that it adopts and, ultimately, the tax payable within its jurisdiction. In the proposed system, therefore, a particular country would be able to independently set whatever depreciation schedules or investment tax credits it chooses, and adopt whatever tax accounting rules it deems fit relative to its policy objectives. Moreover, this thesis argues that the global formulary apportionment model it proposes is not dramatically opposed to the arm's length principle. Indeed, it suggests that the constant assumption to the contrary, even with regard to the usual formulary apportionment methodology, is extravagant because both methodologies are based on a common endeavour, that is, to give a substantially correct reflex of a TNC's true profits. It has often been objected that global formulary apportionment is arbitrary and ignores market conditions. This thesis addresses such concerns by rejecting the application of a single all-purpose formula. Rather, it recognises that TNCs operating in different industries require different treatment and, therefore, suggests the adoption of different formulas to satisfy specific industry requirements. For example, the formula applicable to a financial institution would be different to that applicable to the pharmaceutical industry. Each formula needs to be based on the fundamental necessity to capture the functions, taking into consideration assets used, and risks assumed within that industry. In addition, if the need arises, each formula should be able to be fine-tuned to fit specific situations. Moreover, it is also pertinent to note that the OECD already accepts 'the selected application of a formula developed by both tax administrations in cooperation with a specific taxpayer or MNE group...such as it might be used in a mutual agreement procedure, advance transfer pricing agreement, or other bilateral or multilateral determination.'6 The system proposed in this thesis can thus be easily reconciled with the separate accounting/arm's length which the OECD so vehemently advocates. Both models have the same preoccupations so that what is herein proposed may simply be characterised as an institutionalised version of the system advocated by the OECD. Multilateral formulary apportionment addresses both the double taxation and the allocation problems in international taxation. It resolves the apportionment question 'without depending on an extraordinary degree of goodwill or compliance from taxpayers.'7 It is therefore submitted that, if applied on a multilateral basis with a minimum of central coordination, it also seriously addresses the double taxation problem. Indeed, it is a flexible method given that different formulas may be devised to suit the needs of TNCs operating in different sectors. Consequently, formulary apportionment understood in this sense, is a realistic alternative to the limitations of the present system.

Les prix de transfert sont les prix auxquels les services, les biens corporels et les biens incorporels sont échangés entre parties ayant un lien de dépendance dans le cadre d'opérations transfrontalières. Les prix de transfert des transactions avec les droits de la propriété incorporelle adoptés par un groupe de parties ayant un lien de dépendance ont une incidence directe sur les bénéfices déclarés par chacune de ces parties dans leur pays respectif. Les dispositions législatives françaises et brésiliennes incorporent le principe de pleine concurrence, néanmoins de façon implicite. La question de savoir si un contribuable a respecté le principe de pleine concurrence est une question de fait devant être examinée dans chaque cas
Transfer pricing are the prices to which services, the tangible property and intangibles are exchanged between parties with a link dependency in cross-border operations. The transfer pricing of the transactions with the intangible property rights adopted by a group of parties having a bond of dependence have a direct incidence on the benefit declared by each one as of these parts in their respective country. The French and Brazilian legislative measures incorporate the principle Řarms, however implicitly. The question of whether a taxpayer has respected the principle Řarms, however implicitly is a matter of fact to be examined in each case

Se realiza una investigación comparada de los consejos de las artes de tres regiones subnacionales de países distintos: Cataluña (España), Escocia (Reino Unido) y Jalisco (México) para investigar la aplicación del principio de “arm’s length”, su ejecución, su relación con el contexto cultural y político, así como su inclusión en sistemas institucionales distintos al anglosajón. Con una metodología cualitativa y el uso de estudios de caso, se llevan a cabo trabajos de campo en cada lugar mediante entrevistas, observaciones y trabajo documental, aplicando el canon conjunto de concordancias y diferencias para su análisis. Se concluye que un consejo de las artes no es necesariamente un organismo bajo el principio de “arm’s length” y se reflexiona sobre la influencia que los actores involucrados buscan ejercer a través de sus diversos recursos. La relación entre los consejos y sus contextos muestra las dialécticas entre legitimidad/eficiencia, transparencia/clientelismo y diferenciación/estandarización y tensiones entre centro/periferia. Desde la política se utiliza este principio como argumento retórico, mientras se pretende tener mayor control sobre las decisiones, aunque esto aumente su nivel de responsabilidad. Desde el sector cultural se ignora que el principio busca también mantener su distancia con él para evitar clientelismos. Se evidencia un mimetismo que copia modelos ajenos sin adaptarlos suficientemente al contexto y sin profundizar en experiencias externas ni con reflexiones teóricas, lo cual deja al descubierto algunos errores del proceso.
Titol: Els consells de les arts i el principi d’“arm’s length” en les politiques culturals subnacionals: un estudi comparatiu entre Catalunya (Espanya), Escòcia (Regne Unit) i Jalisco (Mèxic). Resum: Es realitza una investigació comparada dels consells de les arts de tres regions subnacionals de països diversos: Catalunya (Espanya), Escòcia (Regne Unit) i Jalisco (Mèxic) per investigar l'aplicació del principi d’"arm's length", la seva execució, la relació amb el context cultural i polític, així com la seva inclusió en sistemes institucionals diferents a l’anglosaxó. Amb una metodologia qualitativa i l’ús d'estudis de cas, es porten a terme treballs de camp en cada lloc mitjançant entrevistes, observacions i treball documental, aplicant el cànon conjunt de concordances i diferències per a la seva anàlisi. Es conclou que un consell de les arts no és necessàriament un organisme sota el principi d’"arm 's length" i es reflexiona sobre la influència que els actors involucrats busquen exercir a través dels seus diversos recursos. La relació entre els consells i els seus contextos mostra les dialèctiques entre legitimitat/eficiència, transparència/clientelisme, diferenciació/estandardització i tensions entre centre/perifèria. Des de la política s'utilitza aquest principi com argument retòric, mentre es pretén tenir major control sobre les decisions, encara que això augmenti el seu nivell de responsabilitat. Des del sector cultural s'ignora que el principi busca també mantenir la seva distància amb ell per evitar clientelismes. S'evidencia un mimetisme que copia models aliens sense adaptar-los suficientment al context i sense aprofundir en experiències externes ni amb reflexions teòriques, la qual cosa deixa al descobert alguns dels errors del procés.
Title: The arts councils and the arm’s length principle in cultural policy at a subnational level: A comparative study between Catalonia (Spain), Jalisco (Mexico) and Scotland (UK). Abstract: Comparative research on the arts councils of three sub-national regions from different countries, Catalonia (Spain), Jalisco (Mexico) and Scotland (United Kingdom), is carried out to examine the application of the arm's length principle, its performance, its relation to the cultural and politic context and its inclusion in institutional systems other than the Anglo-Saxon system. With a qualitative methodology and case study strategy, fieldwork is performed in each place through interviews, observations and documentary work, applying the joint canon of agreement and difference for analysis. The conclusion reached is that an arts council is not necessarily a body under the arm's length principle and the influence that stakeholders seek to exert through their various resources is reflected upon. The relationship between arts councils and their context shows the dialectics between legitimacy/efficiency, transparency/clientelism and differentiation/standardisation, and the tensions between the centre/periphery. This principle is used from politics as a rhetorical argument, while the aim is to have more control over decisions, even though this increases the level of accountability. The cultural sector is unaware that the principle also seeks to keep its distance from it to avoid clientelism. There is an evident mimicry, copying foreign models without adapting them sufficiently to the context and without delving more deeply into external experiences and theoretical reflections, which reveals some mistakes of the process.

The thesis focuses on the transfer pricing questions in the Czech companies. The theoretical part concerns the legislative background, transfer pricing determination methodology and related necessary documentation. The practical part contains the performed questionnaire survey targeted at transfer pricing methods, binding consideration, documentation, and experience with the tax search. A specific manufacturing company is then used to illustrate the manner of transfer pricing determination.

Disertacijoje nagrinėjami sandorių kainodaros teisinio reguliavimo ypatumai Lietuvoje ypatingą dėmesį kreipiant į tarptautinių organizacijų (Ekonominio bendradarbiavimo ir plėtros organizacijos (EBPO) ir Europos Sąjungos) rekomendacijų įtaką jam. Pirmoje disertacijos dalyje pateikiama sandorių kainodaros samprata, sandorių kainodaros reguliavimo raida Lietuvoje ir EBPO bei Europos Sąjungos lygmeniu, tiriama tarptautinių organizacijų rekomendacijų reikšmė sandorių kainodaros reguliavimui, nagrinėjamas EBPO pavyzdinės mokesčių konvencijos dėl pajamų ir kapitalo 9 straipsnis ir jo pagrindu priimtos Lietuvos teisės normos. Ši dalis baigiama „ištiestosios rankos“ principu pagrįstos sandorių kainodaros kritika ir perspektyvomis. Antroje dalyje, skirtoje bendrosioms sandorių kainodaros praktinio taikymo nuostatoms Lietuvoje ir EBPO bei Europos Sąjungos rekomendacijų įtakai joms, tiriama palyginamumo analizė, sandorių kainodaros metodai ir jų parinkimas ir sandorių kainodaros dokumentavimo reikalavimai. Trečioje dalyje analizuojamos tarptautinės ginčų sandorių kainodaros srityje nagrinėjimo galimybės ir jų prevencija tiriant abipusio susitarimo procedūrą pagal minėtą pavyzdinę konvenciją ir sutartis dėl dvigubo apmokestinimo išvengimo, ginčų šioje srityje nagrinėjimą pagal 1990 m. liepos 23 d. Konvenciją 90/436/EEB dėl dvigubo apmokestinimo išvengimo koreguojant asocijuotų įmonių pelną ir šių ginčų prevenciją išankstiniais kainodaros susitarimais.
In the dissertation there are analyzed peculiarities of transfer pricing legal regulation in Lithuania paying a special attention to the influence of international organizations‘ (Organisation for Economic Co-operation and Development (OECD) and European Union) on it. In the first part there are submitted the concept of transfer pricing, the history of transfer pricing regulation in Lithuania and at the level of OECD and the European Union, there are analyzed impact of recommendations of international organizations to the transfer pricing regulation and Article 9 of OECD Model Tax Convention on Income and on Capital and Lithuanian legal provisions adopted basing on this Article. This part is ended by presenting the critics of transfer pricing, based on arm’s length principle, and the perspectives of it. In the second part, which is dedicated to the general provisions of Lithuanian transfer pricing implementation practical issues with regard to the OECD and European Union recommendations, there are examined comparability analysis, transfer pricing methods and the selection of them, as well as transfer pricing documentation requirements. In the third part there are analyzed the legal regulation of the possibilities of international disputes on transfer pricing resolution and their prevention by examining the mutual agreement procedure under the mentioned Model Convention and conventions of double taxation, resolution of disputes according to Convention 90/436/EEC on the... [to full text]

This thesis is based on the regulations found in the OECD model and the OECD TP guidelines concerning the arm’s length principle. The core of the arm’s length principle is that transactions between associated enterprises should be treated the same as transactions between independent enterprises. This principle can be found in Article 9 of the OECD model. One transaction that may fall within the scope of Article 9 of the OECD model is business restructuring. Business restructuring was previously an unregulated TP area but with the new OECD TP guidelines, from 2010, regulations have been formulated. The aim with thesis is therefore to examine how the arm’s length principle should be applied to the new guidelines for business restructurings of intangibles with an uncertain value at the time of the restructuring. In order to answer the question set out in this thesis some of the factors that affect the application of the arm’s length principle have been examined separately. Firstly the arm’s length principle that is the generally accepted TP method used by both taxpayers and tax administrations in order to find a fair price for transactions between associated enterprises. The principle seeks to identify the controlled transaction and thereafter find a comparable uncontrolled transaction that is similar to the transaction performed between the associated enterprises. The second part examined the meaning of the term business restructuring according to the new guidelines since there is no other legal or general definition. Business restructurings are defined as cross-border redeployments of functions assets and risks, performed by MNEs. As long as a transaction falls within this definition it will be subjected to the arm’s length principle for tax purposes. The third part examined intangibles since that also lack a general definition. The identification and valuation of intangibles is a complex and uncertain thing to do for both taxpayers and tax administrations. When applying the arm’s length principle it is however found that the issue of identification of what constitutes and intangible may be unnecessary. The aspect that should be considered is instead the value of the intangible or more precise, the value that independent enterprises would have agreed upon in a similar situation. The applicability of the arm’s length principle to business restructurings of intangibles with an uncertain value at the time of the restructuring should be found by performing a comparability analysis. In order to perform a comparability analysis, the controlled transaction firstly has to be identified. Thereafter, a comparable uncontrolled transaction needs to be found. An equivalent uncontrolled transaction may not be found in all cases and it should in those cases be examined what independent enterprises would have done if they had been in a comparable situation. The arm’s length principle should be applied to business restructurings of intangibles with an uncertain value in the same manner as for any other uncontrolled transaction. The issues for this type of a transaction become the identification of what constitutes a business restructuring and also how to determine a fair value for the intangibles. The OECD TP guidelines lack some guidance as to the issues that can occur when a comparable uncontrolled transaction cannot be found. This creates an unsatisfactory guesswork for both taxpayers and tax administrations when trying to determine what independent enterprises would have done if they had been in a similar situation. This creates an unnecessary uncertainty when trying to apply the arm’s length principle.

Disertacijoje „Sandorių tarp asocijuotų asmenų kainodaros modelis mokesčių mokėtojams ir mokesčių administratoriui“ nagrinėjama sandorių tarp asocijuotų asmenų kainodaros raida, reglamentavimas bei metodai. Disertacijoje atlikta užsienio šalių mokslininkų sandorių tarp asocijuotų asmenų kainodaros teorinių ir empirinių tyrimų analizė. Remiantis sandorių tarp asocijuotų asmenų kainodaros teisine baze bei užsienio šalių mokslininkų atliktų tyrimų rezultatais, sudaryta: sandorių tarp asocijuotų asmenų kainodaros nustatymo metodiką įmonėms, kurios sudaro kontroliuojamus sandorius, bei sandorių tarp asocijuotų asmenų kainodaros įvertinimo bei kontrolės metodiką mokesčių administratoriams. Iš šių dviejų metodikų buvo sudarytas sandorių tarp asocijuotų asmenų modelis bei pateikiami šio modelio taikymo pavyzdžiai. Disertacijoje pateikiama dažniausiai praktikoje pasitaikančių sandorių (prekių pardavimo, paslaugų teikimo, paskolų suteikimo, nematerialiojo turto perleidimo) kainodaros nustatymo pavyzdžiai Lietuvos įmonėms, o taip pat: disertacijoje buvo atliktas kontroliuojamų sandorių kainodaros reguliavimo efektyvumo Lietuvoje tyrimas.
The analysis of theoretical and empirical researches on transfer pricing was performed in the dissertation. This analysis enabled to distinguish the main transfer pricing areas and to define and supplement the transfer pricing concept. Based on the transfer pricing researches performed by foreign scientists and transfer pricing legislation the transfer pricing model was created and presented in the dissertation. This model can be applied by the tax payers who needs to determine the arm’s length transfer prices in practise (e.g. for sale of goods, provision of services, loans and other inter-company transactions) and for tax administrators who are controlling the compliance of transfer prices with the arm’s length principle in order to ensure that corporate profit tax is paid correctly to the state budget. The transfer pricing model can be used for various inter-company transactions (e.g. sales of goods, services, loans, etc.) for tax payers acting in various industries in countries where OECD guidelines are applied (including Lithuania). Moreover, evaluating the effectiveness of transfer pricing regulation in Lithuania the research was performed. Performing this research the author calculated and compared the taxable income to be received applying the arm’s length principle and the alternative principle – the formulary apportionment. Such research was performed the first time in Lithuania.

The analysis of theoretical and empirical researches on transfer pricing was performed in the dissertation. This analysis enabled to distinguish the main transfer pricing areas and to define and supplement the transfer pricing concept. Based on the transfer pricing researches performed by foreign scientists and transfer pricing legislation the transfer pricing model was created and presented in the dissertation. This model can be applied by the tax payers who needs to determine the arm’s length transfer prices in practise (e.g. for sale of goods, provision of services, loans and other inter-company transactions) and for tax administrators who are controlling the compliance of transfer prices with the arm’s length principle in order to ensure that corporate profit tax is paid correctly to the state budget. The transfer pricing model can be used for various inter-company transactions (e.g. sales of goods, services, loans, etc.) for tax payers acting in various industries in countries where OECD guidelines are applied (including Lithuania). Moreover, evaluating the effectiveness of transfer pricing regulation in Lithuania the research was performed. Performing this research the author calculated and compared the taxable income to be received applying the arm’s length principle and the alternative principle – the formulary apportionment. Such research was performed the first time in Lithuania.
Disertacijoje „Sandorių tarp asocijuotų asmenų kainodaros modelis mokesčių mokėtojams ir mokesčių administratoriui“ nagrinėjama sandorių tarp asocijuotų asmenų kainodaros raida, reglamentavimas bei metodai. Disertacijoje atlikta užsienio šalių mokslininkų sandorių tarp asocijuotų asmenų kainodaros teorinių ir empirinių tyrimų analizė. Remiantis sandorių tarp asocijuotų asmenų kainodaros teisine baze bei užsienio šalių mokslininkų atliktų tyrimų rezultatais, sudaryta: sandorių tarp asocijuotų asmenų kainodaros nustatymo metodiką įmonėms, kurios sudaro kontroliuojamus sandorius, bei sandorių tarp asocijuotų asmenų kainodaros įvertinimo bei kontrolės metodiką mokesčių administratoriams. Iš šių dviejų metodikų buvo sudarytas sandorių tarp asocijuotų asmenų modelis bei pateikiami šio modelio taikymo pavyzdžiai. Disertacijoje pateikiama dažniausiai praktikoje pasitaikančių sandorių (prekių pardavimo, paslaugų teikimo, paskolų suteikimo, nematerialiojo turto perleidimo) kainodaros nustatymo pavyzdžiai Lietuvos įmonėms, o taip pat: disertacijoje buvo atliktas kontroliuojamų sandorių kainodaros reguliavimo efektyvumo Lietuvoje tyrimas.

In the most cases the market range of transfer pricing is determined from statistical data from previous years. In case of these data the time delay occurs when these data are collected and these data do not reflect if that are collected for period of economical growth or recession. As a result, the final transfer pricing range can become distorted. For this reason it is essential to be familiar with strategies and procedures that can be applied to "clean up" statistical data from the influence of business cycle fluctuations. These strategies and procedures are discussed in this diploma thesis. In the first theoretical chapter are presented transfer pricing issues, set the basic terms, analyzed basic available resources dealing with transfer pricing, defined methods for determining transfer pricing range and identified consequences of the economic crisis in relation to transfer pricing. The second chapter is focused on the selection of the most appropriate method for determining transfer pricing and comparative of both the theoretical and practical basis. The last chapter presents the strategies and procedures that can be used in a comparative analysis, in order to eliminate distortions of the statistical data from the influence of business cycle fluctuations.

En el sistema económico actual, América Latina está conformada por países fundamentalmente exportadores de materias primas, bienes intermedios, bienes a granel o commodities. Tales países son actores relevantes en el abastecimiento de bienes primarios en favor de las economías más grandes del mundo, característica que ha motivado la incorporación de metodologías de precios de transferencia específicas o “a medida”, en las respectivas legislaciones de las jurisdicciones latinoamericanas, con el objeto de que las transacciones involucradas tributen de manera adecuada ante los respectivos fiscos. Tal es el caso del Perú que a partir del 2012 cuenta con la citada legislación conocida como el “Sexto Método”. El objeto de este trabajo de investigación consiste en determinar bajo qué circunstancias el Sexto Método peruano cumple con el principio de libre concurrencia o arm’s length en el caso específico de las transferencias internacionales de minerales producidos en el Perú. En búsqueda de cumplir con ese objetivo, el trabajo parte por analizar en el Capítulo I el principio arm’s length o de libre concurrencia que rige la metodología de precios de transferencia y que se basa en la comparabilidad, así como el papel de las Directrices de Precios de Transferencia de la OCDE y la importancia del soft law en esta materia. El objetivo de este capítulo consiste en demostrar que es indispensable realizar un análisis de comparabilidad para determinar el precio de libre concurrencia, en base al cual deben tributar las transacciones entre partes vinculadas. El Capítulo II analiza el ordenamiento internacional en cuanto a la metodología específica para la fijación de precios de commodities. Así, se formula un análisis crítico de la incursión de la OCDE en su pretendido propósito de aprobar una metodología específica para commodities y se pone especial énfasis en las opiniones a favor y en contra de la metodología propuesta, procedentes de organismos y entidades de todo el mundo, y que son conocidas internacionalmente gracias a la plataforma virtual de la OCDE. Adicionalmente se evalúa la versión final de la modificación a las Directrices y los antecedentes latinoamericanos con relación al método para commodities, resaltando las metodologías vigentes en los casos específicos de Argentina y Brasil. El Capítulo III aborda el análisis del caso particular del Perú en cuanto a las exportaciones de concentrados de minerales producidos en dicho país. Perú, a partir del año 2001 adoptó normas sobre precios de transferencia para las operaciones entre partes vinculadas siguiendo el principio de arm’s length y en el año 2012 incorporó una metodología específica para determinar precios de commodities llamada “Sexto Método”, constituyendo parte medular de esta investigación, determinar si dicha metodología se ajusta al arm´s length. Dicho método estableció un procedimiento de valoración específico para operaciones de importación o exportación de bienes con cotización conocida en el mercado internacional. La investigación demuestra que en el caso del Perú, el problema el Sexto Método vulnera el arm´s length por: (i) el carácter obligatorio para determinadas operaciones de exportación e importación; (ii) la fecha en que la ley decide fijar el valor de cotización; y, (iii) la regulación que comprende respecto de lo que genéricamente se ha venido a denominar “ajustes” al valor de cotización, que lo reduce cotización en razón de las características del producto y de las condiciones de la exportación.
Tesis

This chapter explores the types of costs that may be awarded in arbitral proceedings, analysing the underlying principles governing the recoverability of costs in international arbitration. In particular, it focuses on how claims relating to the costs of in-house legal counsel; staff and senior management; and third-party funding arrangements are generally decided by arbitral tribunals. While most arbitral rules expressly allow for the recovery of arbitral costs and reasonable legal fees incurred by external counsel, the position is less clear where the fees of in-house lawyers, lost management time, or third-party funding arrangements are concerned. In theory, in-house counsel fees should be recoverable where parties are able to demonstrate the reasonableness and necessity of these costs. As for management costs, a party should in principle be able to recover such costs in arbitration if it can prove that the time spent on the arbitration caused substantial disruption to its business. Costs underwritten by a third-party funding arrangement should, in principle, be similarly recoverable provided the funding arrangement was agreed at arm’s length and is permitted under the applicable laws.

This chapter analyses the scope, contents, and implications of MiFID II’s new framework as regards the duty to act in client’s best interest. It considers the duty as an autonomous source of obligations for investment firms and as a guidance principle for both EU bodies in charge of implementing MiFID II and judges and supervisory authorities interpreting more specific duties. It also discusses the implications of extending the duty to intrinsically at arm’s length activities such as dealing on own account and self-placement.

This chapter assesses how the integrated operations of multinational enterprises (MNEs) offer opportunities for tax avoidance not open to domestic firms, and how national tax authorities control this. The international character of the income-generating activities of MNEs, the national reach of individual tax administrations, increased international competition over attracting inward FDI and the need to obtain sufficient revenue from MNEs, many of which now operate as digital platforms without any physical nexus with the taxing jurisdiction, has led to calls for the reform of the international tax system. The need for greater international coordination of tax policies is clear. For now, however, national tax authorities remain the main regulators, still applying systems of taxation designed to deal with the international economy of the past, based on the arms-length principle and on the legal separation of companies in the MNE group. However, as the reality of national tax base erosion (base erosion and profit shifting, BEPS) becomes increasingly stark, alternative approaches are becoming politically acceptable, and both states and international organizations are beginning to grapple with the development of a new global model of international corporate taxation based on revised nexus and apportionment rules.

This chapter argues that there is less difference between the two philosophers’ basic conceptions of aesthetic experience than Kant’s critique of aesthetic “perfectionism” seems to suggest. But the basic difference remains that the emotional impact of aesthetic experience is central to Mendelssohn’s account of the “main principles” of the arts, while Kant tries to keep the emotions at arm’s length even in his account of “aesthetic ideas,” which present moral ideas that anyone else would take to be accompanied with profound emotions.

Abstract In this paper modeling of a geometric nonlinear beam and the corresponding matrix representation of the model of 3rd order is considered. Especially in the case of lightweight robots for space applications undergoing large reference motion, the nonlinear dynamic behaviour of the beam should be modeled as exact as possible. Here coupling effects betweeen the elastic variables due to the geometric nonlinear beam kinematic are important. ‘Stiffning effects’ and parametrically excited effects between longitudinal and bending vibrations e.g., should also be considered. Starting with the nonlinear beam kinematics, all equations up to terms of second order are considered. Using the principal of virtual work, nonlinear equations are given, which are discretized by Hermite polynomials in the next step. Considering also terms of second order in the elastic variables, a special technique handling this equations in the usual structural dynamics matrix representation is developed to preserve the couplings of higher order in contrast to the usual linearization. Additionally, the length-variability is considered. So the clearness and effectiveness of matrix methods is combined with beam theory of 3rd. order, this means quadratic terms for the elastic variables axe considered building up state-dependend matrices. The importance of the effects of those couplings axe shown by two simulation examples of a planar and a spatial lightweight, very flexible telescopic robot arm for space operations. It can be shown clearly, that beside the known stiffning effects due to nominal axial loads, effects of higher order may weaken the structure up to failure of the structure.

High cycle fatigue (HCF) due to unforeseen excitation frequencies or due to under predicted force magnitudes, or a combination of both causes control stage failures for steam turbine stakeholders. The objectives of this paper is to provide an extended design criteria toolbox and validation data for control stage design based on experimental data, with the aim to decrease HCF incidents for partial admission turbines. The upstream rotor in a two stage air test turbine is instrumented with pressure transducers and strain gauges. Admission degrees stretching from 28.6% to 100% as one or two admission arcs are simulated by blocking segmental arcs immediately upstream of first stator vanes by aerodynamically shaped filling blocks. Sweeps across a speed range from 50 to 105% of design speed are performed at constant turbine pressure ratio during simultaneous high speed acquisition. A forced response analysis is performed and results presented in Campbell diagrams. Partial admission creates a large number of low engine order forced responses because of the blockage, pumping, loading and unloading processes. Combinations of the number of rotor blades and low engine order excitations are the principal sources of forced response vibrations for the turbine studied herein. Altering the stator and/or rotor pitches will change the excitation pattern. A relation between the circumferential lengths of the admitted and non-admitted arcs that dictates the excitation forces is observed that may serve as a design parameter.

Abstract An explicit solution to the general 3D point to target problem based on the minimum curvature method has been sought for more than four decades. The general case involves the trajectory's start and target points connected by two circular arcs joined by a straight line with the position and direction defined at both ends. It is known that the solutions are multi-valued and efficient iterative schemes to find the principal root have been established. This construction is an essential component of all major trajectory construction packages. However, convergence issues have been reported in cases where the intermediate tangent section is either small or vanishes and rigorous mathematical conditions under which solutions are both possible and are guaranteed to converge have not been published. An implicit expression has now been determined that enables all the roots to be identified and permits either exact, or polynomial type solution methods to be employed. Most historical attempts at solving the problem have been purely algebraic, but a geometric interpretation of related problems has been attempted, showing that a single circular arc and a tangent section can be encapsulated in the surface of a horn torus. These ideas have now been extended, revealing that the solution to the general 3D point to target problem can be represented as a 10th order self-intersecting geometric surface, characterised by the trajectory's start and end points, the radii of the two arcs and the length of the tangent section. An outline of the solution's derivation is provided in the paper together with complete details of the general expression and its various degenerate forms so that readers can implement the algorithms for practical application. Most of the degenerate conditions reduce the order of the governing equation. Full details of the critical and degenerate conditions are also provided and together these indicate the most convenient solution method for each case. In the presence of a tangent section the principal root is still most easily obtained using an iterative scheme, but the mathematical constraints are now known. It is also shown that all other cases degenerate to quadratic forms that can be solved using conventional methods. It is shown how the general expression for the general point to target problem can be modified to give the known solutions to the 3D landing problem and how the example in the published works on this subject is much simplified by the geometric, rather than algebraic treatment.