On September 23, Larysa Vrublevska, an auditor, partner, and head of practice of TP EUCON, gave a speech as part of a seminar from the START agency on the topic “Main aspects of transfer pricing reporting for 2021″.
The expert, first of all, described the stages of preparation for submitting a report on the KO, in particular in terms of reporting, responsibility, exemption from responsibility, making changes to the report, and fines.
Mrs. Larysa discussed important issues regarding responsibility, inspections, and, reporting obligations during martial law. The spokeswoman emphasized that tax audits are not initiated, and audits that have begun are stopped, except for a) chamber audits; b) unscheduled documentary checks carried out on the grounds specified in paragraphs 78.1.7 and 78.1.8 of the Code of Civil Procedure, and/or unscheduled documentary inspections of taxpayers, which resulted in tax information being received, which indicates that the taxpayer has violated currency legislation in terms of compliance with the deadlines for receipt of goods for import operations and/or foreign exchange earnings for export operations; c) actual checks. Documentary unscheduled inspections for all other reasons are prohibited during martial law.
In addition, Larysa Vrublevska also considered the monitoring aspects, describing in detail all the features of the mechanism, and the moratorium on checks analyzed the scheme of transfer pricing in action, analyzed in detail the features of reporting in the field of TCU for 2021, the issue of an international group of companies, the calculation of the aggregate consolidated income of MGK, the impact of the COVID-19 pandemic on the field of TCU.
The participants of the seminar also analyzed the problems in the field of transfer pricing (problems with substantiation of losses, comparability analysis, fluctuations in the level of operating profit of negative exchange differences, growth of certain types of unplanned expenses, etc.), as well as possible ways of solving these problems ( changing approaches to the use of data for comparative analysis, in particular, the application of OECD recommendations to tax administrations to ensure flexibility; changing the methods of TCU; trying to prove the impact of force majeure circumstances, etc.).
The expert comprehensively analyzed the issue of the business purpose with examples, in particular, the content of the definition and the legal basis, the changes that were introduced in 2021, tax periods, the analysis algorithm, the issue of the lack of commercial rationality, hidden (constructive) dividends, in particular, she presented a scheme in the context of the sale of goods, works, services The issue of 30% adjustment of paragraphs 140.5.4., 140.5.5.-1 of the PKU was also not overlooked.
The EUCON auditor also focused on the issue of practical aspects of TCU: 1) the criterion of the amount of revenue for the formation of the primary sample; 2) quality of the final sample; 3) segmentation of account data; 4) choosing a period for analysis, using historical data.
The speech ended with a review and analysis of the current case law of the Supreme Court in the field of transfer pricing.