ORGANISATIONFORECONOMICCO-OPERATIONANDDEVELOPMENTInvitationtoCommentonTransactionalProfitMethodsCENTREFORTAXPOLICYANDADMINISTRATIONInvitationtocommentONtransactionalprofitmethodsIntroductionAspartofitsproceduresformonitoringtheimplementationofthe1995TransferPricingGuidelines(“the1995TPGuidelines”),WorkingPartyNo.6oftheOECDCommitteeonFiscalAffairshasselectedtwoareastobeconsideredinpriority:Comparabilityissuesencounteredwhenapplyingthetransferpricingmethodsauthorisedbythe1995TPGuidelines(whethertraditionaltransactionmethodsortransactionalprofitmethods)andTheapplicationoftransactionalprofitmethods(i.e.,theprofitsplitmethodsandthetransactionalnetmarginmethodwhicharedescribedinChapterIIIofthe1995TPGuidelines).ItisexpectedthattheultimateoutcomeofthereviewoftransactionalprofitmethodsshouldbearevisionofChapterIIIofthe1995Guidelines.Webelieveitisessentialforourworktobenefitfrominputfromthebusinesscommunityandfromotherinterestednon-governmentalparties.InApril2003,thepublicwasinvitedtocommentonissuesinrelationtocomparability(seeinvitationtocommentandcommentsreceivedatHYPERLINK"http://www.oecd.org/document/47/0,2340,en_2649_37427_2508655_1_1_1_37427,00.html"http://www.oecd.org/document/47/0,2340,en_2649_37427_2508655_1_1_1_37427,00.html).TheWorkingPartyhasbeenworkingonaseriesofIssuesnotesthatwillbereleasedforpubliccommentinthefirsthalfof2006.CommentsonissuesrelatedtoprofitmethodswereinvitedfromtheBusinessandIndustryAdvisoryCommittee(BIAC).Wearenowissuinganopeninvitationtocontributeonanumberofissuesinrelationtotransactionalprofitmethodsthatarelistedbelow,aswellasonanyotherrelatedissuecommentatorsmightwishtoraise.Weaskyoutoidentifyyourselfwhenrespondingtothisquestionnaireaswemayneedtofollow-uponyourresponses.Subjecttopriorauthorisationbythecommentators,wemaypublishthecontributionsreceivedonourInternetsite.Pleasedonothesitatetocontactusshouldyouhaveanyquestion.Responsesshouldbesenteitherbye-mail,faxormailtothefollowingaddressby31August2006:CarolineSilberztein-C