The Arm’s Length Principle and Commercially Irrational Omissions: Failure to Renegotiate or Terminate Adverse Controlled Agreements

This article examines whether, and if so, under which circumstances the arm’s length principle, as authoritatively stated by Art. 9(1) of the OECD Model Convention, authorizes the imputation of a hypothetical renegotiation or termination if an associated enterprise has failed to renegotiate or terminate an adverse controlled agreement.