Enterprises when transacting with each other, are not subjected to the same market forces as independent enterprises. From a Swedish perspective the applicable rule to transactions between associated enterprises is chap. 14 para. 19. Both the Swedish arm’s length rule and its international equivalence are abstract rules of law as they merely provides the legal ramification if associated enterprises interact in a manner that independent enterprises would not. The international equivalence to the Swedish arm’s length rule is not a separate rule of law per se it is the gateway by which the Swedish rule is made applicable in international situations, through the use of a double tax agreement, with the fundamental principle that a double tax agreement can only limit, never expand a countries right to tax. The OECD Guidelines governing the general aspects of transfer pricing states that the fundamental meaning of the Guidelines is to find ways of establishing a price used between associated enterprises that are similar to what independent enterprise would conclude. The first step towards finding such a price is though the comparability analyses were all the relevant characteristics of the transferred goods is analysed. The chapter in the Guidelines that governs business restructurings is meant to be applied alongside the general aspects of transfer pricing. The Guidelines proposed way of finding an appropriate price for the transaction of a branch of production with respect to profit potential is with special consideration to risks. The profit potential is irrevocably linked with the risks transferred since it is a presumption that with increased risk there is a potential for higher profits. Although the risks are the most important aspect there are other things to look at such as other options realistically available and benefits from concluding a business restructuring.

<p>The purpose of this master’s thesis is to examine and analyse how a transfer pricing adjustment is made and how related parties should handle price adjustments from a customs perspective in Sweden. The examination includes describing the valuation methods available for transfer pricing and customs valuation with regards to related parties. In addition, the differences in connection to the valuation are described and analysed.</p><p>Goods imported to Sweden must be cleared through customs: the importer presents a customs declaration to the Swedish Customs and pays customs duty. The customs duty is calculated using a customs value and customs valuation is the system that enables the importer to establish correct customs values on imported goods. Transfer pricing is the determination of prices on transactions taken place between companies belonging to the same group and has a direct effect on the income tax payable. There are six customs valuation methods that are hierarchically applied and six transfer pricing methods that are applied somewhat differently. There are similarities between the methods and most of the customs valuation methods have a corresponding transfer pricing method, or vice versa. Even if there are similarities, many factors make reconciliation of the methods difficult. Such factors are the different time for assessing the value and that the customs valuation methods are applied in a strictly hierarchical way with no possibility to choose the most suitable method.</p><p>Customs duties and transfer pricing both share the same valuation concept, although interpreted differently, being that the value shall be based on the price that the parties would arrive at under open market conditions. However, relevant values on the same transaction differ significantly due to trying to be in accordance with respective rules. The differences in expectations and the conflicting interests on the outcome of the valuation lead to problems in the tax field. As a conclusion, customs valuation and transfer pricing can undeniably be described as “the two opposing and necessary sides of the same ‘coin’, whose respective values unavoidably affect the whole balance of a system of closely connected valuation”.</p><p>In order for related parties to use the transaction value method, which is the superior customs valuation method, the price must not have been influenced due to their relationship. If one of two tests prescribed by law can prove that the relationship has not influenced the price, the related parties can use the transaction value method to establish the customs value. If the transaction value, for some reason cannot be used, the importer has to address other options on to how to establish the customs value.</p><p>The conclusion of this master’s thesis is that related parties should include a price review clause in their contract or pricing policy. The company should notify the Swedish Customs about the provisional price and make an incomplete customs declaration. When information enabling the calculation of the customs value is available, the importer should file a complementary declaration. As an alternative, the importer should declare an open claim to the Swedish Customs arguing that the transaction value cannot be applied and, as a consequence thereof, explain in the customs value declaration why the applied customs value is correct.</p><p>This thesis provides three recommendations concerning how to deal with the complications of customs valuation and transfer pricing. The first recommendation is that rules and recommendations surrounding transfer pricing and customs valuation should, to the extent possible, be harmonised. The second recommendation is that co-operation between the Swedish Tax Agency and the Swedish Customs must improve, for example through advance pricing arrangements for both transfer pricing and customs purposes, documentation requirements, and joint audits. The third recommendation is that related parties should take the same care and documentation approach for customs purposes as it does for transfer pricing. Importing companies should make a price review clause in their contract before the importation and present an incomplete customs declaration. This way, in case of adjustments, the related party is able to uphold an arm’s length standard on the price and has the possibility to use the preferred transaction value for customs purposes, if that is desirable.</p>

<p>När relaterade bolag belägna i olika länder säljer varor och tjänster sinsemellan kan det av olika anledningar ske till ett pris som avviker från det marknadsmässiga. Det kan bero på skatteplanering, men också på diverse andra omständigheter. För att kunna fastställa vilket som är rätt marknadspris och därigenom kunna ta ut rätt skatt är de flesta länder bundna av dubbelbeskattningsavtal, som vanligtvis är utformade efter OECD: s modellavtal. I artikel 9 i detta modellavtal finns regler om internprissättning och där definieras ”Armlängdsprinci-pen”, som säger att prissättningen ska följa de marknadsmässiga principerna. Vid en från marknadspris avvikande prissättning måste det konstateras om bolagen är relaterade eller ej, då reglerna för internprissättning endast gäller relaterade bolag. Enligt OECD: s modellav-tal kan bolag vara relaterade på grund av kontroll genom kapital, ledning eller annan kon-troll, och det är det sista kriteriet, begreppet ”annan kontroll”, som skapar störst förvirring. Varken OECD: s artikel 9 eller modellavtalet som sådant innehåller någon definition av be-greppet och det står inte heller att läsa hur de tre kriterierna förhåller sig till varandra. Vida-re saknas vägledning om vilka situationer som omfattas av artikeln.</p><p>Enligt Art 3(2) i modellavtalet ska odefinierade termer tolkas enligt nationell lagstiftning om inte omständigheterna kräver annorlunda. Art. 9 ges ofta en vidare definition än den given i OECD:s modellavtal, vilket kan resultera i en inkorrekt skattesituation. Eftersom dubbelbeskattningsavtalet endast rör justering av dubbelbeskattning, kan en justering inte äga rum genom användande av modellavtalet. Genom att utvidga beskattningsrätten, bryter länderna mot den gyllene regeln, vilken de flesta dubbelbeskattningsavtal bygger på, att ett dubbelbeskattningsavtal aldrig kan användas för att utvidga beskattningsrätten, endast in-skränka denna. Syftet med uppsatsen är att undersöka hur man kan ge kontrollbegreppet en riktig definition som överensstämmer med Art. 9. Eftersom tolkning via nationell lag kan ge oönskade resultat, kräver omständigheterna ett annorlunda tolkningssätt. Genom att ge kontrollbegreppet en autonom konventions tolkning som reflekterar syftet och bakgrunden till Art. 9, undviks problemet.</p> / <p>When associated enterprises situated in different countries sell goods and services between themselves, the transfer price may, because of different reasons, diverge from the market price. The divergence may be a consequence of tax planning, but it may also arise from other circumstances. To determine the right market price and thereby be able to make a correct taxation, most countries are committed to double taxation agreements, which are usually designed after the OECD Model Convention (hereafter OECD MC). Art. 9 of the convention provides for transfer pricing regulations and in this article the “arm’s length principle” is defined, stating that the pricing should be set according to the market price principles. When the transfer price diverges from the market price it must be established if the enterprises are associated or not, since the transfer pricing regulations only applies to associated enterprises. According to the OECD MC enterprises may be associated through capital, management or control, and it is the last notion, the notion of “control” that creates the greatest confusion. Neither in Art. 9 nor in the rest of the OECD MC, a definition of the notion exists, and it is nowhere stated how the criteria relate to each other. Further-more, guidance is missing describing in which situations the article is meant to be applica-ble.</p><p>According to Art. 3(2) OECD MC, undefined terms shall be interpreted according to domestic law, unless the context otherwise requires. Art. 9 is often given a wider definition than the one provided in the OECD MC when domestic interpretation is used, which may result in an incorrect tax situation. Since the double taxation agreement only deals with the adjustment of double taxation, an adjustment cannot be justified by the use of the OECD MC. By broadening the scope of the article, the countries break the golden rule upon which most double taxation agreements rely, that a double taxation agreement may never be used to expand the right of taxation, only restrict it. The purpose of the thesis is to investigate how to give the term control an appropriate definition in line with Art. 9. Since the use of domestic interpretation may give unwanted results, the context requires an alternative way of interpretation. By giving the notion of control an autonomous treaty interpretation that reflects the purpose and context of Art. 9, the problem is avoided.</p>

The OECD Guidelines stipulates that a business restructuring resulting in shifted profit potential not automatically implies that compensation should be paid between the restructuring parties. This thesis examines when shifted profit potential should be remunerated from the perspective of the fictive Swedish distributor Enterprise A which is facing a business restructuring. The arm’s length principle does not require any remuneration for the mere shift of profit potential when applying the principle on business restructurings. Instead, the questions are whether there has been a transfer of something of value; or a termination or significant renegotiation of the current agreement. In the context of remuneration for shifted profit potential the questions can be rephrased to whether considerable assets and/or rights have been transferred which carry considerable profit potential that should be remunerated. And, whether the arm’s length principle requires remuneration to be paid by reference to the concept of “options realistically available”. Enterprise A’s shifted profit potential could be remunerated and thus have tax consequences if there are other options realistically available for the entity apart from entering into the business restructuring. Enterprise A’s bargain power would then have been greater and consequently the chances of being remunerated as well. Further, Enterprise A could be remunerated as a result of the shifted profit potential if the entity takes title to transferred marketing intangibles that can be identified and assessed valuable. The shifted profit potential should as well be remunerated and thus have tax consequences if the parties in Corporate Group C have included a compensation clause in their contract, and the clause can be assessed as at arm’s length when considering what independent parties would have agreed upon.

The name of the study means “The short arm - a study in diversity and arm’s length in the cultural collaboration model”. Right now there is a reform in the Swedish cultural administration where the responsibility for handing out state funds and grants to cultural organizations is changing from the state government to the local regional governments. The purpose of this study is to map the organisational changes caused by the reform and investigate how this affects the regional policies concerning cultural diversity and the arm’s length principle. The study has found that the regional governments have mainly adapted existing structures to incorporate the necessary changes for the cultural collaboration model. The exception being the non government organizations that have made considerable changes to their organizations. While cultural diversity is still strong in the model arm’s length principle has been hollowed out. / Just nu pågår en stor reform inom kulturpolitiken där ansvaret för fördelningen av statens medel till kultur förflyttas från staten till regionerna och landstingen. Syftet med uppsatsen är att kartlägga den organisationsomvandling inom det kulturpolitiska fältet som sker på grund av reformen samt undersöka hur detta påverkar regionernas arbete med kulturell mångfald och armlängdsavstånd. Studien har funnit att inga större förändringar har skett i de regionala organisationerna, utan att de anpassat redan existerande organisationsstrukturer. Undantaget har varit intresseorganisationerna som gjort större förändringar i sina organisationer. Även om kulturell mångfald fortfarande är starkt i modellen har principen om armlängds avstånd blivit urholkad.

À medida que a economia global se expande e os mercados se tornam mais abertos para os investimentos, as empresas dividem atividades entre as suas unidades estabelecidas em diferentes países. A determinação dos preços praticados em operações de transferência entre companhias associadas situadas em diferentes jurisdições fiscais é chamada de Preços de Transferência. Para fins tributários, os preços de transferência determinam o valor de receita que cada empresa recebe e o referente valor de tributos incidentes sobre receitas e/ou resultados no país exportador e no país importador, sendo um assunto relevante para as administrações tributárias dos países onde essas operações ocorrem e para as empresas com unidades em mais de um pais. O presente estudo apresenta uma análise relacionada aos Preços de Transferência praticados por uma empresa brasileira que importa matéria-prima de suas empresas vinculadas estabelecidas em outras jurisdições tributárias. É apresentado um estudo de caso descritivo que ilustra essa situação e as regras de Preço de Transferência brasileiras. Ao final, conclui-se que o contribuinte deve aplicar mais de uma metodologia de cálculo dentre as disponibilizadas pela legislação brasileira, a fim de identificar a que resulte em menor ajuste tributário. Conclui-se, adicionalmente, que a temática dos preços de transferência depende de muitas variáveis individuais, as quais devem ser estudadas e analisadas caso a caso, de acordo com as particularidades envolvidas em cada situação. / As the global economy continues to expand and markets become more open to investment, enterprises share activities among their units established in different countries. The prices determination for the transfer of goods between affiliated companies situated in different tax jurisdictions is called Transfer Pricing. For tax purposes, transfer pricing determines the amount of income that each party earns and thus, the amount of income tax due in both the export and import countries, representing a relevant issue to the tax administrations in countries where these operations occur and to the companies which have units in more than one country. This study presents an analysis related to Transfer Prices practiced by a Brazilian company that imports raw material from its associated units established in other tax jurisdictions. A case study that shows this situation and the Brazilian Transfer Pricing rules are presented. The conclusion is that the company should apply more than one of the available calculus methodology in order to identify which one results in the lower tax adjustment. In addition to that, it is concluded that the Transfer Pricing is an issue that depends on many variables that should be carefully analyzed for each situation or company, considering the particularities of each situation.

À medida que a economia global se expande e os mercados se tornam mais abertos para os investimentos, as empresas dividem atividades entre as suas unidades estabelecidas em diferentes países. A determinação dos preços praticados em operações de transferência entre companhias associadas situadas em diferentes jurisdições fiscais é chamada de Preços de Transferência. Para fins tributários, os preços de transferência determinam o valor de receita que cada empresa recebe e o referente valor de tributos incidentes sobre receitas e/ou resultados no país exportador e no país importador, sendo um assunto relevante para as administrações tributárias dos países onde essas operações ocorrem e para as empresas com unidades em mais de um pais. O presente estudo apresenta uma análise relacionada aos Preços de Transferência praticados por uma empresa brasileira que importa matéria-prima de suas empresas vinculadas estabelecidas em outras jurisdições tributárias. É apresentado um estudo de caso descritivo que ilustra essa situação e as regras de Preço de Transferência brasileiras. Ao final, conclui-se que o contribuinte deve aplicar mais de uma metodologia de cálculo dentre as disponibilizadas pela legislação brasileira, a fim de identificar a que resulte em menor ajuste tributário. Conclui-se, adicionalmente, que a temática dos preços de transferência depende de muitas variáveis individuais, as quais devem ser estudadas e analisadas caso a caso, de acordo com as particularidades envolvidas em cada situação. / As the global economy continues to expand and markets become more open to investment, enterprises share activities among their units established in different countries. The prices determination for the transfer of goods between affiliated companies situated in different tax jurisdictions is called Transfer Pricing. For tax purposes, transfer pricing determines the amount of income that each party earns and thus, the amount of income tax due in both the export and import countries, representing a relevant issue to the tax administrations in countries where these operations occur and to the companies which have units in more than one country. This study presents an analysis related to Transfer Prices practiced by a Brazilian company that imports raw material from its associated units established in other tax jurisdictions. A case study that shows this situation and the Brazilian Transfer Pricing rules are presented. The conclusion is that the company should apply more than one of the available calculus methodology in order to identify which one results in the lower tax adjustment. In addition to that, it is concluded that the Transfer Pricing is an issue that depends on many variables that should be carefully analyzed for each situation or company, considering the particularities of each situation.

À medida que a economia global se expande e os mercados se tornam mais abertos para os investimentos, as empresas dividem atividades entre as suas unidades estabelecidas em diferentes países. A determinação dos preços praticados em operações de transferência entre companhias associadas situadas em diferentes jurisdições fiscais é chamada de Preços de Transferência. Para fins tributários, os preços de transferência determinam o valor de receita que cada empresa recebe e o referente valor de tributos incidentes sobre receitas e/ou resultados no país exportador e no país importador, sendo um assunto relevante para as administrações tributárias dos países onde essas operações ocorrem e para as empresas com unidades em mais de um pais. O presente estudo apresenta uma análise relacionada aos Preços de Transferência praticados por uma empresa brasileira que importa matéria-prima de suas empresas vinculadas estabelecidas em outras jurisdições tributárias. É apresentado um estudo de caso descritivo que ilustra essa situação e as regras de Preço de Transferência brasileiras. Ao final, conclui-se que o contribuinte deve aplicar mais de uma metodologia de cálculo dentre as disponibilizadas pela legislação brasileira, a fim de identificar a que resulte em menor ajuste tributário. Conclui-se, adicionalmente, que a temática dos preços de transferência depende de muitas variáveis individuais, as quais devem ser estudadas e analisadas caso a caso, de acordo com as particularidades envolvidas em cada situação. / As the global economy continues to expand and markets become more open to investment, enterprises share activities among their units established in different countries. The prices determination for the transfer of goods between affiliated companies situated in different tax jurisdictions is called Transfer Pricing. For tax purposes, transfer pricing determines the amount of income that each party earns and thus, the amount of income tax due in both the export and import countries, representing a relevant issue to the tax administrations in countries where these operations occur and to the companies which have units in more than one country. This study presents an analysis related to Transfer Prices practiced by a Brazilian company that imports raw material from its associated units established in other tax jurisdictions. A case study that shows this situation and the Brazilian Transfer Pricing rules are presented. The conclusion is that the company should apply more than one of the available calculus methodology in order to identify which one results in the lower tax adjustment. In addition to that, it is concluded that the Transfer Pricing is an issue that depends on many variables that should be carefully analyzed for each situation or company, considering the particularities of each situation.

The thesis critically examines the Brazilian adoption of arm's length principle and assesses its impact on the country's fiscal sovereignty in cross-border commodities transactions. The arm's length principle is regarded as an useful tool for preventing tax avoidance and ensuring tax neutrality. While the adoption of this principle by Brazil serves as a way of aligning its tax regulations with international standards and enhancing tax transparency, it also raises critical questions regarding the country’s fiscal sovereignty. This is due to the fact that the adoption of the arm's length principle results in decreasing the country’s control over tax policies in order to adhere to global and international standards. The thesis critically examines the motivation behind the adoption of this principle by Brazil and evaluates it under the perspective of the practicability principle. The thesis also assesses the implications on fiscal sovereignty of Brazil and highlights potential conflicts that may arise in the ongoing transformation in the Brazilian tax landscape.

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.