Answer:
The correct answer is the assumption of arm's-length transactions.
Explanation:
The Principle of Full Competition refers to the condition in which the parties to a transaction are independent and must be on equal terms. According to the Ecuadorian tax regulations, the Principle of Full Competition is exercised when in commercial or financial transactions between related parties, different conditions are agreed to those that had been agreed with independent parties, the profits that could be obtained by one of the parties , but by applying these conditions were not obtained, they will be subject to taxation.
Answer:
Assumption of arm's length transaction
Explanation:
The arm's length transaction is a business deal where the buyer and seller act independently without one person influencing the other to achieve the most beneficial deal. This transaction is seen as an arm's length transaction despite both the buyer and the seller being related because they used their different independent agents in making the negotiations and this ensures everyone acts in their individual interests and conflict of interest is avoided.
