Application of Arms Length Principle in National Legal System

#ArmsLengthetc #TransferPricing #NotatArmslength #ContractLaw  #ComparativeLaw #IEFbygirindra

The Arms Length is an interesting phrase in contract law. I dont understand that why there is a discrimination with Leg or Finger or Thumb. Then comes the length of Arm or Arm Span. The boxing is interesting game where longer the arms higher the chance of winning. Similar case is for swimming or kabaddi or basket ball or discuss throw. However, the Arms Length is a well established principle in contract law. The wikipedia Article (https://en.wikipedia.org/wiki/Arm%27s_length_principle) defines it as "The arm's length principle (ALP) is the condition or the fact that the parties to a transaction are independent and on an equal footing. Such a transaction is known as an "arm's-length transaction". It is used specifically in contract law to arrange an equitable agreement that will stand up to legal scrutiny, even though the parties may have shared interests (e.g., employer-employee) or are too closely related to be seen as completely independent (e.g., the parties have familial ties)"  . And the investopedia (http://www.investopedia.com/terms/a/armslength.asp) defines it as "A transaction in which the buyers and sellers of a product act independently and have no relationship to each other. The concept of an arm's length transaction is to ensure that both parties in the deal are acting in their own self interest and are not subject to any pressure or duress from the other party."

The most interesting Area of ALP is the Transfer Pricing. The Arms Length Principles gets introduced in National Law by Transfer Pricing Regulations and Advance Pricing Regulations. Afterwards, I compiled the year of introduction of Arm Length Principle in country from internet in National Law. The list of countries is given as below as sorted by Column 4:

Country Name	GDP          2013	GDP             2014	YEAR of Introduction of Transfer Pricing Regulation	YEAR OF Introduction of Advance  Pricing Regulation
[1]	[2]	[3]	[4]	[5]
Norway	522349106383	499817138323	1911
United Kingdom	2712296271990	2988893283565	1915	2010
Sweden	578742001488	571090480171	1928	2010
United States	16768053000000	17419000000000	1935	1991
Switzerland	684919206141	701037135966	1940
Belgium	521402393365	531546586179	1962	2004
Portugal	226073492966	230116912514	1964	2014
Finland	269190106005	272216575502	1965
Luxembourg	61794506556	64873963098	1969	2015
Austria	428698577647	436887543467	1972	2011
Germany	3745317149399	3868291231824	1972	2006
Spain	1369261671179	1381342101736	1978	2007
Australia	1563950959270	1454675479666	1982	2011
Italy	2133539300230	2141161325367	1986	2004
Japan	4919563108373	4601461206885	1986	2001
Hungary	134401774738	138346669915	1992	2007
Czech Republic	208328435109	205269709743	1993	2006
Poland	524059039423	544966555714	1993
Slovak Republic	98033841689	100248607784	1993
Korea, Rep.	1305604981272	1410382988616	1995	2015
South Africa	366243783486	350085020840	1995
Chile	276673695234	258061522887	1997	2013
Mexico	1258773797056	1294689733233	1997	2012
New Zealand			1997	1994
Argentina	614383517370	537659972702	1998
Canada	1838964175409	1785386649602	1998	1993
Denmark	335877548364	342362478768	1998	2002
Estonia	25246787742	26485161116	1998
Colombia	380063456193	377739622866	2002	2004
India	1861801615478	2048517438874	2002	2012
Netherlands	864169242953	879319321495	2002	2014
Egypt, Arab Rep.	271972822883	286538047766	2005	2011
Slovenia	47675804618	49491440620	2005
Israel	292408330564	305674837195	2006
Turkey	823242587404	798429233036	2007	2007
China	9490602600148	10354831729340	2008	2009
Malaysia	323342854423	338103822298	2009
Singapore	302245904260	307859758504	2009	2015
El Salvador	24350900000	25163700000	2010	2012
France	2810249215589	2829192039172	2010	2005
Indonesia	910478729099	888538201025	2010	2010
Ireland	238259956627	250813607686	2010
Russian Federation	2079024782973	1860597922763	2012	2012
Costa Rica	49236710394	49552580683	2013	2013

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