An entity is considered armâs length if they are not related, not affiliated persons, or otherwise controlled by another member or members. This means that companies owned by parents, siblings or children, through blood or marriage, cannot be considered at armâs length. Goods or services purchased from companies that are not at armâs length cannot be supported for cost-share. Refer to Section 251 of the Income Tax Act for the detailed statutory provision for determining armâs length relationships. If you have any questions about whether a supplier meets this requirement, please contact the appropriate program by replying to your approval letter.