arm's-length standard

简明释义

公平独立核算标准

英英释义

例句

1.In international trade, adhering to the arm's-length standard is crucial for fair competition.

在国际贸易中，遵循独立交易原则对于公平竞争至关重要。

2.Investors often prefer companies that adhere to the arm's-length standard in their financial dealings.

投资者通常更喜欢在财务交易中遵循独立交易原则的公司。

3.To comply with regulations, the firm conducted a review of its pricing policies to align with the arm's-length standard.

为了遵守法规，该公司对其定价政策进行了审查，以符合独立交易原则。

4.The audit revealed discrepancies that suggested the company was not following the arm's-length standard in related-party transactions.

审计显示出不一致之处，表明该公司在关联方交易中未遵循独立交易原则。

5.The company must ensure that all transactions with its subsidiaries meet the arm's-length standard to avoid tax penalties.

公司必须确保与其子公司的所有交易符合独立交易原则，以避免税务处罚。

作文

The concept of the arm's-length standard is crucial in various fields, especially in finance and taxation. It refers to a principle that transactions between related parties should be conducted as if they were unrelated, ensuring fairness and transparency in pricing. This standard is particularly important in international business, where companies often engage in cross-border transactions with subsidiaries or affiliates. By adhering to the arm's-length standard, businesses can avoid potential conflicts of interest and ensure that their financial reporting accurately reflects their economic reality.In essence, the arm's-length standard serves to prevent manipulation of prices and profits through related-party transactions. For instance, if a parent company sells goods to its subsidiary at an inflated price, it could artificially boost the subsidiary's revenue while minimizing the parent's taxable income. Such practices can lead to significant tax avoidance and create unfair competitive advantages. Therefore, tax authorities around the world have established guidelines based on the arm's-length standard to ensure that related-party transactions are priced fairly.Moreover, the arm's-length standard plays a vital role in transfer pricing, which is the pricing of goods, services, and intangibles between related entities. Transfer pricing regulations are designed to ensure that these transactions are conducted at market rates, reflecting what independent parties would agree upon. This is essential for maintaining the integrity of tax systems and ensuring that profits are taxed where economic activities occur.To illustrate the importance of the arm's-length standard, consider a multinational corporation that operates in different countries. If this corporation has a subsidiary in a low-tax jurisdiction, it may be tempted to set artificially low prices for goods sold to that subsidiary. By doing so, the corporation could shift profits to the low-tax country, reducing its overall tax burden. However, by following the arm's-length standard, the corporation must ensure that the prices charged to the subsidiary are consistent with those charged in the open market, thereby preventing tax base erosion in higher-tax jurisdictions.Furthermore, the arm's-length standard is not only applicable to tax matters but also to corporate governance and ethical business practices. Companies that adhere to this principle demonstrate a commitment to fairness and transparency, fostering trust among stakeholders, including investors, employees, and customers. In today's globalized economy, where businesses are scrutinized more than ever, maintaining ethical standards is paramount for long-term success.In conclusion, the arm's-length standard is an essential principle that promotes fairness and transparency in related-party transactions. It helps prevent tax avoidance, ensures compliance with transfer pricing regulations, and supports ethical business practices. As businesses continue to navigate complex global markets, understanding and applying the arm's-length standard will be critical for maintaining integrity and achieving sustainable growth. Companies that prioritize this standard will not only comply with legal requirements but also build a reputation for fairness and accountability, ultimately leading to greater success in their respective industries.

“臂长标准”这一概念在多个领域中至关重要，尤其是在金融和税务方面。它指的是一个原则，即相关方之间的交易应当像是无关的一样进行，以确保定价的公平性和透明度。这一标准在国际商业中尤为重要，因为公司常常与子公司或关联公司进行跨境交易。通过遵循“臂长标准”，企业可以避免潜在的利益冲突，并确保其财务报告准确反映其经济现实。从本质上讲，“臂长标准”旨在防止通过相关方交易操纵价格和利润。例如，如果一家母公司以虚高的价格将商品出售给其子公司，这可能会人为地提高子公司的收入，同时减少母公司的应税收入。这种做法可能导致显著的避税行为，并创造不公平的竞争优势。因此，世界各地的税务机关已建立基于“臂长标准”的指导方针，以确保相关方交易的定价公平。此外，“臂长标准”在转让定价中也发挥着至关重要的作用，转让定价是指相关实体之间商品、服务和无形资产的定价。转让定价规则旨在确保这些交易按照市场价格进行，反映独立方达成的协议。这对于维护税制的完整性以及确保利润在经济活动发生地被征税至关重要。为了说明“臂长标准”的重要性，考虑一家在不同国家运营的跨国公司。如果该公司在低税管辖区设有子公司，可能会倾向于以人为地低的价格向该子公司出售商品。通过这样做，该公司可能将利润转移到低税国家，从而减少整体税负。然而，通过遵循“臂长标准”，该公司必须确保向子公司收取的价格与市场上收取的价格一致，从而防止在高税管辖区的税基侵蚀。此外，“臂长标准”不仅适用于税务事务，还适用于公司治理和商业道德实践。遵循这一原则的公司展示了对公平和透明的承诺，增强了投资者、员工和客户等利益相关者之间的信任。在当今全球化的经济中，企业受到的审查比以往任何时候都要严格，因此保持道德标准对长期成功至关重要。总之，“臂长标准”是一个促进相关方交易公平性和透明性的基本原则。它有助于防止避税，确保遵守转让定价规定，并支持道德商业实践。随着企业继续在复杂的全球市场中航行，理解和应用“臂长标准”对于维护诚信和实现可持续增长至关重要。优先考虑这一标准的公司不仅会遵守法律要求，还会建立公平和责任的声誉，最终在各自行业中取得更大的成功。