Although countries may have different views on the application of Article 9 to determine the balance of debt and equity funding of an entity within an MNE group, the purpose of this section is to provide guidance for countries that use the accurate delineation under Chapter I to determine whether a purported loan should be regarded as a loan for tax purposes (or should be regarded as some other kind of payment, in particular a contribution to equity capital).
TPG2022 Chapter X paragraph 10.10
Posted on | By OECD
Category: OECD Transfer Pricing Guidelines (2022), TPG2022 Chapter X: Transfer Pricing Aspects of Financial Transactions | Tag: Accurate delineation, Article 9, Disregarding the transaction, Equity or Debt/Loan, Financial transactions, Non-recognition and re-characterisation, Purported loan, Regarded as a loan for tax purposes
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