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5% of costs and expenditures; or C) the Transactional Net Margin Method. The comments also included a discussion of the range of prices produced by arm's-length methods, examples provided in the draft circular, and the use of the comparable profits and transactional net margin methods, as well as 482 regulations, a taxpayer may use the comparable profits method (CPM) or the profit split method; under the guidelines, a taxpayer may use the profit split method or the transactional net margin method ( |
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