If the relevant condition of the controlled transaction (e.g. price or margin) is within the arm’s length range, no adjustment should be made.
TPG2017 Chapter III paragraph 3.60
Category: A. Performing a comparability analysis, OECD Transfer Pricing Guidelines (2017), TPG2017 Chapter III: Comparability Analysis | Tag: Arm’s length range, Comparability analysis, Interquartile range, Median« Prev | Next »
TPG2017 Chapter III paragraph 3.65
Generally speaking, a loss-making uncontrolled transaction should trigger further investigation in order to establish whether or not it can be a comparable. Circumstances in which loss-making...TPG2017 Chapter III paragraph 3.64
An independent enterprise would not continue loss-generating activities unless it had reasonable expectations of future profits. See paragraphs 1.129-1.131. Simple or low risk functions in particular...TPG2017 Chapter III paragraph 3.62
In determining this point, where the range comprises results of relatively equal and high reliability, it could be argued that any point in the range satisfies...TPG2017 Chapter III paragraph 3.61
If the relevant condition of the controlled transaction (e.g. price or margin) falls outside the arm’s length range asserted by the tax administration, the taxpayer should...TPG2017 Chapter III paragraph 3.57
It may also be the case that, while every effort has been made to exclude points that have a lesser degree of comparability, what is arrived...
TP case laws
Panama vs “Petroleum Wholesale Corp”, September 2020, Administrative Tribunal, Case No TAT-RF-062