The need to adjust comparables and the requirement for accuracy and reliability are pointed out in these Guidelines on several occasions, both for the general application of the arm’s length principle and more specifically in the context of each method. To be comparable means that none of the differences (if any) between the situations being compared could materially affect the condition being examined in the methodology or that reasonably accurate adjustments can be made to eliminate the effect of any such differences. Whether comparability adjustments should be performed (and if so, what adjustments should be performed) in a particular case is a matter of judgment that should be evaluated in light of the discussion of costs and compliance burden at Section C.
TPG2017 Chapter III paragraph 3.47
Category: A. Performing a comparability analysis, OECD Transfer Pricing Guidelines (2017), TPG2017 Chapter III: Comparability Analysis | Tag: Comparability adjustments, Comparability analysis, Comparables, Comparables search, Search criteria« Prev | Next »
TPG2017 Chapter III paragraph 3.46
The process followed to identify potential comparables is one of the most critical aspects of the comparability analysis and it should be transparent, systematic and verifiable....TPG2017 Chapter III paragraph 3.45
It would not be appropriate to give systematic preference to one approach over the other because, depending on the circumstances of the case, there could be...TPG2017 Chapter III paragraph 3.44
One advantage of the “deductive” approach is that it is more reproducible and transparent than the “additive”. It is also easier to verify because the review...TPG2017 Chapter III paragraph 3.43
In practice, both quantitative and qualitative criteria are used to include or reject potential comparables. Examples of qualitative criteria are found in product portfolios and business...OECD COVID-19 TPG paragraph 28
This aspect is also relevant in performing the comparability analysis. For instance, assume government intervention forces a taxpayer to close its distribution facilities for three months....
TP case laws
Japan vs. Publisher Corp, April 2017, Tokyo District Court, Case No 第２６７号－５６（順号１３００５）