TaxesAuxiliary activities Rebate Deficiency Profit ratio Debt/equity ratio Loophole
Best method rule
One important rule in transfer pricing is the requirement to use the method that produces the most accurate measure of an arm's length price. This means that the chosen method should reflect the price that would have been agreed upon by two unrelated parties in a similar transaction. However, the rule does not specify a hierarchy among the different methods available. Therefore, it is crucial for taxpayers to carefully consider and select the most appropriate transfer pricing method for their specific situation.
Related terms
Understand the meaning and definition of Auxiliary activities in the context of stock market, trading, and investments.
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