The most recent OECD draft guidelines have highlighted a deficiency in the manner in which most Transfer Pricing experts prepare their intangibles analyses; specifically, in the application of the Comparable Uncontrolled Price Method (CUP). By omitting information in their analysis, Transfer Pricing experts are significantly reducing the accuracy of their transfer pricing position.
Historically, there has been a lack of guidance and advice on this matter, making this an unknown issue. With the issuance of the draft guidelines – as well as with the support of research done by ktMINE– we are able to provide experts with much needed education on this matter.
I invite you to review a portion of my response to the OECD draft guidelines below and here.
Common Misconceptions Related to the Application of the CUP/CUT Method
In my work with global tax authorities, consultants, and transfer pricing practitioners, I often encounter the following misconceptions related to the application of the CUP Method or CUT Method. Indeed, education is needed to ensure sound, prudent transfer pricing analyses. I recommend adding these following points to the discussion draft to provide an even playing field with respect to the use of the CUP Method or CUT Method.
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