The Forgotten Link: "Control" in Section 482

The foundation of international taxable income allocations between related parties is formed by the imposition of an arm's length standard. The purpose of Section 482 adjustments is to place transactions between related parties on the same basis as that between taxpayers operating at arm's length. The presence of control over a company invokes this measure. For the purposes of Section 482, actual control of the entity must be found, and prescribed percentages of voting power are eschewed. The case law interpreting the control requirements of Section 482 is investigated with a view toward the section's application to international business transactions.