FBK experts took part in the tax-risks panel discussion
Within the framework of the panel discussion organized by the Financial University under the RF Government on the topic of “State tax risks in the context of the rules for transfer pricing” the leading legal practitioners, representatives of the Federal Tax Service, lecturers of higher schools and representatives of non-government organizations discussed the topics of taxation control over transfer pricing, law enforcement practice and development prospects.
FBK audit and consulting company lawyers shared their experience in this field with their colleagues. Andrey Tikhonovsky, FBK Vice-President, offered some practical ideas on the actualization of the OECD Guidelines for transfer pricing in the light of Russia’s international cooperation. “At present a serious modification of OECD guidelines for transfer pricing and tax information disclosure is underway, noted the FBK vice-president. - Russia should take into consideration the changes in progress and respond to them promptly”.
In his turn, Alexei Yakovlev, FBK Legal, head of the tax litigation practice, in his report on the “Control over pricing and assessment of tax benefit validity” touched upon the issues of distinguishing between the ranges of competence of the Federal Tax Service and territorial rating authorities in price control and outlined the taxpayers’ key risks. “The official elucidations unreasonably expand the boundaries of control over pricing for taxation purposes allowing for price checking, including that from the point of view of validity of the obtained tax benefit, and these issues are within the range of competence of the territorial rating authorities and may be subject to regular field and desk audits”, explained the head of tax litigation practice of FBK Legal.
And, according to Alexei Yakovlev, now in the process of assessment of tax benefit validity the territorial rating authorities set no practical limits to themselves in the use of pricing methods or in the sources of information about them, which creates essential risks for taxpayers and embarrasses their right for protection. “The TP control procedures and tax benefit assessment should not duplicate each other, there should be no competition between them nor the ground for substituting each other”, added the expert. At the same time he expressed his confidence that in the result of a constructive professional dialogue or building of a relevant law enforcement practice the contradictions and inconsistencies he dwelt on in his report might be eliminated.
FBK audit and consulting company lawyers shared their experience in this field with their colleagues. Andrey Tikhonovsky, FBK Vice-President, offered some practical ideas on the actualization of the OECD Guidelines for transfer pricing in the light of Russia’s international cooperation. “At present a serious modification of OECD guidelines for transfer pricing and tax information disclosure is underway, noted the FBK vice-president. - Russia should take into consideration the changes in progress and respond to them promptly”.
In his turn, Alexei Yakovlev, FBK Legal, head of the tax litigation practice, in his report on the “Control over pricing and assessment of tax benefit validity” touched upon the issues of distinguishing between the ranges of competence of the Federal Tax Service and territorial rating authorities in price control and outlined the taxpayers’ key risks. “The official elucidations unreasonably expand the boundaries of control over pricing for taxation purposes allowing for price checking, including that from the point of view of validity of the obtained tax benefit, and these issues are within the range of competence of the territorial rating authorities and may be subject to regular field and desk audits”, explained the head of tax litigation practice of FBK Legal.
And, according to Alexei Yakovlev, now in the process of assessment of tax benefit validity the territorial rating authorities set no practical limits to themselves in the use of pricing methods or in the sources of information about them, which creates essential risks for taxpayers and embarrasses their right for protection. “The TP control procedures and tax benefit assessment should not duplicate each other, there should be no competition between them nor the ground for substituting each other”, added the expert. At the same time he expressed his confidence that in the result of a constructive professional dialogue or building of a relevant law enforcement practice the contradictions and inconsistencies he dwelt on in his report might be eliminated.
