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Post by account_disabled on Mar 14, 2024 5:35:57 GMT
To establish agreed terms of transactions between unrelated entities. According to the regulations, affiliated companies are obliged to determine the price of controlled transactions in accordance with market principles. It should also be noted that controlled transactions may also occur in transactions with unrelated contractors under General Interpretation no. Minister of Finance Year Month Day Definition of Controlled Transactions. Legal consistency arising from commercial corporate law and transfer prices Consequences of breach. Of market prices The legal system should be internally consistent The norms it contains should not be contradictory to each other. As AWB Directory mentioned above, the provisions of the Commercial Companies Act, in particular the issuance of binding orders, may give rise to the risk of breach of transfer pricing regulations. A parent company may enter into transactions on different terms than unrelated entities, thereby issuing. Binding orders that are inconsistent with the arm's length principle in the transfer pricing context. Therefore, this provision may lead to non-market cooperation among subsidiaries. According to the new wording of the Commercial Companies Act, when executing a binding order, the members of the subsidiary's management board, supervisory board, audit committee and liquidator shall not be liable for any damage caused.
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