By Robert Feinschreiber, Charles River Associates & Margaret Kent, Transfer Pricing Consortium
The Inter-American Center of Tax Administrations (CIAT), as gatekeeper, is readying a transfer pricing database for use in applying the sixth method.
Ten Latin American counties are participating in this module: Argentina, Bolivia, Brazil, Costa Rica, the Dominican Republic, Ecuador, Guatemala, Paraguay, Peru, and Uruguay.
The sixth transfer pricing method is an offshoot of the first transfer pricing method – the comparable uncontrolled price method.
This sixth method is designed to record and reflect commodity prices. CIAT’s commodity database includes a wide number of commodity products. The CIAT database includes agricultural and non-agricultural products such as corn, wheat, soybeans, oil, bananas, barley, malt, and hake, depending on the jurisdiction involved.
In some situations, the applicable commodity includes gold, copper, zinc, coffee, oilseed, and fishmeal.
It should be noted that the sixth transfer pricing method applies primarily to developing countries. For the most part, these countries are resource rich. CIAT publishes this commodity data in Spanish and English.
–Robert Feinschreiber is with Charles River Associates, Key Biscayne, Florida.
-Margaret Kent is with Transfer Pricing Consortium, Key Biscayne, Florida.