Whenever a comparable is proposed, it is important to ensure that a comparability analysis of the controlled and uncontrolled transactions is performed in order to identify material differences, if any, between them and, where necessary and possible, to adjust for such differences. In particular, the comparability analysis might reveal that the restructured entity continues to perform valuable and significant functions and/or the presence of local intangibles and/or of economically significant risks that remain in the “stripped” entity after the restructuring but are not found in the proposed comparables. See Section A on the possible differences between restructured activities and start-up situations.
TPG2017 Chapter IX paragraph 9.112
Posted on | By OECD
Category: OECD Transfer Pricing Guidelines (2017) | Tag: Business restructuring, Conversion of full-fledged distributors, Local marketing intangibles, Pre- and Post Restructuring Result
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