Who are 'Connected Persons'?
Lexicon Entry: Anti-Abuse Provisions under Article 35
Feb 17, 2026
4 min read
Arakan Statutory Team
**Connected Persons** include individuals or entities with ownership or control relationships that could influence transaction pricing, specifically targeting payments to owners or officers.
Deductibility Limitations
Payments to Connected Persons (salaries, bonuses, service fees) are only deductible if they match the ALP. Forensic scrutiny is high on unstructured payments to UBOs (Ultimate Beneficial Owners).