Target Margin is a frequently used transfer pricing model, and one which particularly lends itself to limited risk distribution arrangements. LCN co-founder Paul Sutton discusses the implications in detail.
- When Target Margin arrangements are most likely to be suitable
- The two main options when drafting the pricing clause of the ICA, and how to choose which one to use
- The importance of looking at the transaction from both a TP perspective and a legal one, and then reconciling the two
- Common mistakes, and how to avoid them
