International - Possible Application of the Berry Ratio for the Distribution Function in the Chemical Industry
- A. Hickman; E. Sporken; M.A. Midzio
- International Transfer Pricing Journal, 2010 (Volume 17), No 1
- 18 December 2009
This article outlines the possibilities that exist in the United Kingdom, the Netherlands, Germany, France and Italy for taxpayers to apply the Berry ratio as a reliable profit level indicator in determining the arm’s length remuneration paid by a manufacturer to local distributors for services rendered. The authors reconsider how remuneration is calculated for distributors in the chemical industry, particularly those trading in commodity, as opposed to specialty, chemicals.