Mr. Philip Kermode:

I cannot comment on an individual case. In terms of defining an arm's-length transaction, there are cases that are more straightforward than others. There are cases that are more complex, that is for sure. What one would have to examine is the extent to which any case deviated substantially from the agreed standards. There are large grey areas particularly around certain types of transaction. There are, of course, cases where individual jurisdictions would contend what other jurisdictions would say. I do not believe that thus in itself totally invalidates all transfer pricing. In terms of an approach to this matter, the OECD has essentially taken the line that the arm's length pricing system works in the vast majority of cases but there are an important group of minority cases that are not dealt with.