The TPSM is “special” among oecd transfer pricing methods because it is the only bilateral method. Initially, the profits from routine activities are separated from other profits and allocated to companies that perform these routine activities. In a second step, the remaining or remaining profits are distributed among the participating companies. This is done with a distribution key that must realistically reflect the share of the companies concerned in the production of profits. While the unilateral methods of an intercompany transaction only analyze the results of a company, the use of a bilateral method requires detailed information about all the companies involved in the operation. This makes the TPSM one of the most complex transfer pricing methods. (ii) coordination with the sanctions regime. The documents described in subsection (j) (2) (i) of this section meet the primary documentation requirement set out in subsection 1.6662-6 (d) (2) (iii) (B) with respect to a qualified cost-sharing agreement. (3) New participant controlled.
Where a new controlled participant enters into a qualified cost-sharing agreement and acquires an interest in the covered intangible assets, the new participant shall pay a competing counter-transaction, in accordance with paragraphs 1.482-1 and 1.482-4 to 1.482-6, for such interests, to any controlled participant whose interest has been acquired. (1) In general. A controlled participant that provides intangible ownership of an eligible cost-sharing agreement shall be treated as if it had transferred shares of that ownership to the other controlled participants, and those other controlled participants shall make redemptions to the controlling participant as provided for in subsection (g)(2) of this Section. If the other controlled participants do not make such payments, the District Director may, in accordance with the provisions of § 1.482-1 and 1.482-4 to 1.482-6, make appropriate allocations to reflect a competing underperformance for the transferred intangible. Where a group of controlled taxable persons participates in a qualified cost-sharing agreement, any change in the interests of the controlled participants in the recognised intangible assets, whether due to the arrival of a new participant or other transfers (including assumed transfers) of shares between existing participants, shall be a transfer of intangible ownership, and the District Director may reasonably: e. to make allocations. in accordance with paragraphs 1.482-1 and 1.482-4 to 1.482-6, to reflect a counter-performance in comparison for transmission. See points (g) (3), 4 and 5 of this section. Point 6 of paragraph g of this Section lays down rules on the allocation of unalmitted shares under an eligible cost-sharing agreement. A similar effect could apply to cost plans. Under these agreements, two or more related persons contribute to the development of intangible value, their cost shares being based on a measure of the relative value or benefits of intangible value for each party.
Whereas before the crisis, such intangible heritage would have qualified as rewarding to be invested, things could be different. (3) provide for an adjustment of the shares of the participants audited to the intangible development costs in order to take account of variations in the economic conditions, activities and business practices of the participants as well as the ongoing evolution of intangible assets under the agreement; and (i) accounting rules. . . . .