TPG2022 Chapter VI paragraph 6.139

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Where information regarding reliable comparable uncontrolled transactions cannot be identified, the arm’s length principle requires use of another method to determine the price that uncontrolled parties would have agreed under comparable circumstances. In making such determinations, it is important to consider:

  • The functions, assets and risks of the respective parties to the transaction.
  • The business reasons for engaging in the transaction.
  • The perspectives of and options realistically available to each of the parties to the transaction.
  • The competitive advantages conferred by the intangibles including especially the relative profitability of products and services or potential products and services related to the intangibles.
  • The expected future economic benefits from the transaction.
  • Other comparability factors such as features of local markets, location savings, assembled workforce, and MNE group synergies.

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