. A critical hypothesis is entirely essential to the transfer pricing method (TPM) proposed by the subject, whether it be with respect to the taxpayer, a third party, a sector or a commercial or economic situation. Violation of a critical assumption triggers the renegotiation or cancellation of the BAPA, even if the critical assumption may or may not be under the taxpayer`s control. Critical assumptions that are under the control of a subject include, for example. B, a specific type of activity or a particular business or business structure. Critical assumptions that are not under the control of a taxpayer include, for example. B, a number of expected business volumes. The international standard approved by OECD members should be used to set transfer prices for tax purposes. Article 9 of the OECD Standard Convention on Income and Capital Taxes (OECD Model Tax Convention) contains the definitions of an asterisk contained in the 1995 report to the OECD Tax Committee, “Transfer Pricing Guidelines for Multinational Enterprises and Tax Administration.” .

The information in this appendix was last updated on February 6, 2004. It is proposed to include the following points in a PATA member`s position paper: each PATA member should publish the procedures for AAPAPAs. It is proposed to include the following points in an application for the SUBJECT under the BAPA. However, the PATA member should refer a subject to national procedures to ensure that all necessary information is provided. This guide must be published in English, French and Japanese, all texts being treated in the same way. Domestic Price Scheme (Domestic APA) Mr Takeo Shikado Vice Commissioner National Tax Agency Ministry of Finance 1-1 Kasumigaseki 3-chome Chiyoda-ku, Tokyo 100-8978, Japan Correspondence or exchange of information under this direction must be made at the addresses listed in Appendix E. A BAPA is an agreement, understanding or similar undertaking between two competent authorities (2) with respect to establishing an acceptable and reasonable transfer pricing methodology (TPM) applicable to a cross-border transaction between companies associated with the meaning of the applicable agreement, subject to certain conditions.