Arm's length transaction - definition

Arm's length transaction - definition - example one is...

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Arm's length transaction - definition http://www.quicktaxweb.ca/include/glossary/he_d_arms_length.html 1 of 1 6/5/2005 9:39 AM Arm's length transaction - definition This is an expression used to describe a transaction between persons in which each acts in their own self-interest. Arm's length employees are, generally, employees who are not related to you and who are not carrying on your business with you (for example, as your partners). Unrelated persons usually deal with each other at arm's length, although this might not be the case if, for
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Unformatted text preview: example, one is under the influence or control of the other. Related persons are not considered to deal with each other at arm's length. Related persons include individuals connected by blood relationship, marriage, or adoption (legal or in fact). Also, a corporation and a shareholder who controls the corporation are related. Dealings with these individuals are non-arms length transactions ....
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