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Productora), loading and unloading it (SUNCO), transporting it
(Transportes), and distributing it (petitioner). The expenses
related to the operations of those other entities, and we assume
some profit to them, were paid from sales proceeds before
calculating any profit or loss split.
We are persuaded that had petitioner been an unrelated
party, it would never have agreed to retain the 55-cent-per-
package commission rate for the years in issue. We conclude that
the 55-cent-per-package commission rate did not constitute an
arm's-length rate. The question then is what commission rate an
unrelated party would have accepted for its services in the SCP
deal.
Respondent contends that the otros growers' 10-percent
commission rate serves as the best evidence of an arm's-length
charge for the services petitioner rendered in the SCP deal. The
otros growers were unrelated customers of petitioner. Respondent
contends that petitioner's functions for the otros growers were
in all important respects the same functions that petitioner
performed for the Canelos growers. Respondent maintains that, to
be comparable, the 10-percent commission rate required only two
adjustments to account for two additional services that the
Canelos growers received that the otros growers did not.
Accordingly, respondent contends, for its services in the SCP
deal petitioner should have charged a commission rate of 11.06-
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