3 The Arm's-Length Comparator Problem

grime tango, afrikaner folk, city pop symphonic metal · 3:36

Listen on 93

Lyrics

[Verse 1]
Picture a founder standing alone
Built a company from nothing they own
Tax court asks would you pay someone else
The same compensation for comparable help
But there's nobody there to compare
Just one person in that founder's chair
The standard test starts to break down
When there's no other employee around

[Chorus]
Arm's-length comparator problem
Can't find what doesn't exist
Would you pay a stranger the same way
When that stranger's not on your list
No comparable employee
Role is unique by design
Any answer's hypothetical
Drawing an impossible line

[Verse 2]
Solo entrepreneurs face this maze
Courts want market rates for what they pays
But the founder's role is one of a kind
No benchmark salary you can find
Chief executive and janitor too
Visionary and accountant who
Could fill those shoes at market rate
When the comparison is fabricate

[Chorus]
Arm's-length comparator problem
Can't find what doesn't exist
Would you pay a stranger the same way
When that stranger's not on your list
No comparable employee
Role is unique by definition
Any answer's hypothetical
An unanswerable proposition

[Bridge]
Some courts have seen the light
Acknowledged this impossible plight
Declined to apply the test mechanically
When comparison's just fantasy
The standard breaks when roles are rare
And no one else could fill that chair

[Chorus]
Arm's-length comparator problem
Can't find what doesn't exist
Would you pay a stranger the same way
When that stranger's not on your list
No comparable employee
Role is unique by design
Any answer's hypothetical
Drawing an impossible line

[Outro]
When you're the only one who could do the job
The comparator test becomes a fraud
Solo founders know this truth so well
Some stories just can't parallel

← 2 The "By Reason of Shareholding" Causation Test | 4 The Double Role Problem →