Definition of Intentional set-off:
An arrangement between two enterprises in which the cost-benefit of a transaction between the two is valued for purposes of offsetting the net gain or losses derived from the transaction, thus limiting the tax liabilities. For example, if enterprise A purchases a product from enterprise B, it could receive reciprocal value if enterprise B purchases the raw materials to produce the product from enterprise A. The exchange generates an offset to any benefit gains which minimizes the tax consequence.
Meaning of Intentional set-off & Intentional set-off Definition