Possible Application of the Berry Ratio for the Distribution Function in the Consumer Electronics Industry in Europe

This article outlines the possibilities that exist in the United Kingdom, the Netherlands, Germany, France and Italy for taxpayers to apply the Berry ratio as a reliable profit level indicator in determining the arm’s length remuneration paid by a manufacturer to local distributors for services rendered. The authors reconsider how remuneration is calculated for distributors in the consumer electronics industry, including a broad field of electronics that includes devices such as TVs, radios, mobile phones, hi-fi stereos, home theatres, handheld and software-based games and Internet appliances.