Article 4 - Diverging Conditions

A. Where Terms, conditions or remuneration of a Controlled Transaction are not similar to conditions of a Comparable Transaction between Independent Persons, a Person involved in such Controlled Transaction and to whom these Bylaws are applicable shall make adjustments to their tax base to include the returns that such Person would have received but for the dissimilar conditions and report such adjustments in their tax declarations to be submitted to the Authority.

B. Where terms, conditions or remuneration of a Controlled Transaction are not similar to conditions of a Comparable Transaction between Independent Persons, the Authority may:
1. Direct that the tax base of one or more of the Persons involved in the Controlled Transaction be adjusted to include the returns that such Persons would have received but for the dissimilar conditions; or
2. Reallocate or disregard the result arising out of a Controlled Transaction as to reflect the result that would have arisen from a Comparable Transaction.

C. The Authority shall make a determination as to whether Controlled Transactions are conducted on an Arm’s Length basis in accordance with the relevant provisions of these Bylaws.