In column B at I to O indicate, against each method identified in column A, the total dollar value of related-party dealings to which you applied that method. Express them as a percentage of the sum of all the related-party dealings for which you used methods to establish arm's length pricing.
Indicate this percentage by using the appropriate code from the following table
Percentage of dollar value of related-party dealings that are revenue in nature - items 2a to 2d only
Percentage |
Code |
0% |
1 |
1% to less than 25% |
2 |
25% to less than 50% |
3 |
50% to less than 75% |
4 |
75% to less than 100% |
5 |
100% |
6 |
The amount referred to above as the total dollar value of related-party dealings is, as in the calculation of the value of dealings in column A, the sum total of such dealings, both income derived and expenses incurred. Do not offset these amounts against each other.
The percentage required may be calculated on the basis of a reasonable estimate.
A statistical sampling is an acceptable method, provided the method follows accepted statistical practice. Keep any working papers relating to this process.