24RPM price (transfer price using the residual pricing method)

24 RPM price (transfer price using the residual pricing method)

Subject to this Part, the RPM price for an assessable gas for a taxpayer in a year of tax, is: (a) if the cost‑plus price of the assessable gas is higher than the netback price—the netback price; and (b) otherwise—the price given by the formula: Image unavailable in extracted text if the cost‑plus price and the netback price of the assessable gas can be obtained by applying the residual pricing method.

Note: The residual pricing method can only be applied if certain information is available (see section 29).