Importance Whereas the State model for financial regulation of controlled transaction is imperfect, the Russian entities incurred significant financial costs. It becomes very reasonable to decide how the model may be developed in Russia. Objectives The research analyzes how principles and methods for the State regulation of interests on debt liabilities evolved, and determines the principal reasons for tax risks. We also devised a model for financial regulation of controlled transactions of intragroup finance. Methods We employed mathematical and statistical methods to evaluate the existing systems for regulating debt liabilities so to identify the most appropriate tools in terms of the market economy. Results We made a comparative analysis of the refinance rate, key rate and MosPrime rate. We proposed our own definition of beneficial owner, internal corporate regulation of controlled transactions and the concept of bona fide reduction of financial costs. We devised a step-by-step method for corporate financial regulation of controlled transactions of intragroup finance, and estimated its efficiency. Conclusions and Relevance If the Russian companies implement the methods for corporate financial regulation of controlled transactions of intragroup finance, they will optimize tax risks in line with the current tax system of the Russian Federation.
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