Possible Application of the Berry Ratio for the Distribution Function in the Chemical Industry

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.