81The fact that a resident company has been granted a loan by a non-resident company on terms which do not correspond to those which would have been agreed upon at arms length constitutes, for the Member State in which the borrowing company is resident, an objective element which can be independently verified in order to determine whether the transaction in question represents, in whole or in part, a purely artificial arrangement, the essential purpose of which is to circumvent the tax legislation of that Member State. In that regard, the question is whether, had there been an arms-length relationship between the companies concerned, the loan would not have been granted or would have been granted for a different amount or at a different rate of interest.
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