Danny Beeton Published in Bloomberg BNA Transfer Pricing Forum Fall 2016 Issue

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Danny Beeton, Managing Director in Duff & Phelps' European Transfer Pricing practice, provide perspectives to detailed practical guidance on technical Transfer Pricing issues.

For this Fall 2016 issue, the following questions were discussed:

1. What is the standard practice in selecting potential comparables? Are industry codes or key words used to accept or exclude comparables? What use is made of quantitative screens to exclude comparables?
2. What is the standard practice in making adjustments to improve comparability? Is very close comparability required before such adjustments are made? What sort of adjustments are usually made?
3. How many comparables are required or preferred? Is there a desire or obligation to produce a statistically significant confidence level?
4. In practice, is there a preference for ‘‘internal’’ comparables? How much effort is made to identify any such benchmarks?
5. Is there a practice to make reference to ‘‘secret comparables’’?
6. Are searches for comparables made every year? To what extent is it sufficient simply to update the figures for the original set of comparables?