The Circular provides that the remuneration arising from back-to-back intra-group financing transactions should comply with the arm’s length principle i.e. correspond to the price that would have been agreed by independent parties in comparable transactions in the open market. In this respect, a comparability analysis must be carried out for the purpose of:
- Identifying the commercial and financial relationship between the related parties and determining the conditions and the economically significant circumstances of the transaction
- Comparing the conditions and economically significant circumstances of the transaction with comparable transactions between independent parties
In order to fulfill and assess accurately the above requirements our team uses the most reputable platforms such as Bloomberg.