In this article for Tax Notes International, Asger Kelstrup examines the Danish Supreme Court’s EET decision on transfer pricing ranges. The Court accepted use of a full range in a gross-margin benchmark where observations were few and comparability defects unproven. The case clarifies that interquartile ranges are a tool to improve comparability defects, not a mandate. The article contrasts the ruling with OECD guidance, reviews the use of a range in Danish and EU case law, and outlines practical takeaways. In short, let functional comparability drive method and metrics, document adjustments transparently, and reserve statistical narrowing for identified defects.
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