Transactions between associated enterprises as well as such between close relatives must satisfy certain demands in order to be accepted for tax purposes. When prices are set within associated enterprises, a natural conflict of interest subject to the laws of the market may often not arise between the parties involved. For the attribution of such income, the OECD’s arm’s length principle serves to facilitate transfer pricing in compliance with tax regulations. Martin Pröll and Martin Schwaiger examine cross-border transactions between associated enterprises from the perspective of Austrian tax law and conclude that the due care of a prudent manager should be to the fore of valuation.