Episode 1: Target Margin arrangements

  • Updated: February 2, 2023
  • Read Time: 1 minute read

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
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