Administrative Tribunal Luxembourg
In order to substantiate the arm’s length character of the variable interest of a PPL, taxpayers may compare such rate with a fixed interest rate loan.
Any value within the arm’s length (full) range should satisfy the arm’s length principle. Thus, not limited to the interquartile range.
Even if not prepared at the moment when the intercompany transaction is put in place, TP studies can be prepared (and are admissible) ex post, for the sole purposes of defense in a procedure.
