Subject Nowadays, there is a growing contradiction between the global nature of the economy and local nature of taxation. The difference of tax rates in different countries is one of the key factors that have a significant impact on investment flows. The problem of legitimacy and unjustified understatement of tax liabilities of companies to the budget system of the Russian Federation as a result of using transfer pricing, of course, needs consideration. Objectives The purpose of the study is to develop theoretical and methodological aspects of the implementation of effective tax control over transfer pricing in the Russian Federation. Methods I applied econometric methods to investigate a theoretical development of the effective legislation, specifics of law enforcement and judicial arbitration practice of organizations, and tax control over transfer pricing in the Russian Federation, its basic forms, methods and fundamental principles. Results As Russian tax authorities traditionally consider the control over transfer pricing within the country as a way of allocating the tax base between the subjects of the Russian Federation, and as a mechanism of fight against shadow companies, it is necessary to review a number of transactions involving the largest taxpayers, to analyze the conditions of the transactions, and, in fact, to apply the principle, which is used in the international practice of tax administration of transfer pricing, i.e. the arm's length principle. Conclusions and Relevance I propose certain measures to improve the rules of tax control over transfer pricing. The proposed amendments to the legislation on control of transfer pricing, namely the Federal Law of July 18, 2011 № 227-FZ will help resolve the conflict of interest between the taxpayers and tax authorities on the issue of control over market prices and introduction of uniform rules for the use of information on transfer pricing usage by companies.
Keywords: harmonization, unification, legislation, transfer pricing, tax control, transfer pricing, minimization, tax losses, budget system, tax optimization
References:
Golishevskii V.I., Kizimov A.S. Mezhdunarodnye printsipy nalogovogo regulirovaniya transfertnogo tsenoobrazovaniya [International principles of tax regulation of transfer pricing]. Finansy = Finance, 2012, no. 7, pp. 32–36.
Grundel L.P. Sravnitel'naya kharakteristika primeneniya metodov transfertnogo tsenoobrazovaniya v Rossii i za rubezhom [Comparative characteristics of applying the transfer pricing methods in Russia and abroad]. Ekonomika. Nalogi. Pravo = Economy. Taxes. Law, 2014, no. 1, pp. 114–121.
Grundel L.P. Nalogovoe administrirovanie transfertnogo tsenoobrazovaniya v Rossii: monografiya [Tax administration of transfer pricing in Russia: a monograph]. Moscow, Financial University under Government of Russian Federation Publ., 2014, 368 p.
Gusev V.V., Mambetaliev N.T. O kontrole za transfertnym tsenoobrazovaniem v stranakh EvrAzES [On control of transfer pricing in EurAsEC countries]. Nalogovyi vestnik = Tax Bulletin, 2013, no. 4, pp. 3–6.
Zas'ko V.N., Shakirova D.Yu. Nalogovoe regulirovanie deyatel'nosti transnatsional'nykh kompanii [Tax regulation of transnational companies]. Ekonomika. Nalogi. Pravo = Economy. Taxes. Law, 2014, no. 2, pp. 106–112.
Zas'ko V.N., Shakirova D.Yu. Transfertnoe tsenoobrazovanie: riski dlya nalogoplatel'shchikov i nalogovykh organov [Transfer pricing: the risks for taxpayers and tax authorities]. Nalogovaya politika i praktika = Tax Policy and Practice, 2012, no. 1-1, pp. 25–31.
Kizimov A.S. Royalti v mezhdunarodnom nalogovom planirovanii [Royalty in the international tax planning]. Nalogi i nalogooblozhenie = Taxes and Taxation, 2007, no. 12, pp. 6–11.
Lermontov Yu.M. Novye pravila transfertnogo nalogooblozheniya [New rules for transfer pricing]. Nalogovoe planirovanie = Tax Planning, 2011, no. 4, pp. 19–30.
Lermontov Yu.M. Transfertnoe tsenoobrazovanie i ego posledstviya [Transfer pricing and its implications]. Pravo i ekonomika = Law and Economics, 2009, no. 7, pp. 102–105.
Nalogovaya politika gosudarstva [Tax policy of the State]. Moscow, Yurait Publ., 2014, 388 p.
Nepesov K.A. Nalogovye aspekty transfertnogo tsenoobrazovaniya: sravnitel'nyi analiz opyta Rossii i zarubezhnykh stran [Tax aspects of transfer pricing: a comparative analysis of Russian and foreign experience]. Moscow, Volters Kluver Publ., 2007, 304 p.
Panskov V.G. Transfertnoe tsenoobrazovanie: problemy i vozmozhnye puti ikh resheniya [Transfer pricing: problems and possible solutions]. Nalogovaya politika i praktika = Tax Policy and Practice, 2012, no. 4, pp. 23–26.
Polezharova L.V. Mekhanizm resheniya problemy mezhdunarodnogo dvoinogo nalogooblozheniya [A mechanism to solve the problem of international double taxation]. Nalogovyi vestnik = Tax Bulletin, 2012, no. 5, pp. 3–10.
Ponomareva N.V. Kontrol' za transfertnym tsenoobrazovaniem: zatraty veliki, effekt somnitelen [Control over transfer pricing: costs are high, effect is disputable]. Nalogovaya politika i praktika = Tax Policy and Practice, 2010, no. 5, pp. 11–15.
Teoriya i praktika nalogooblozheniya [Theory and practice of taxation]. Moscow, Magistr Publ., 2014, 429 p.
Finansovo-kreditnyi entsiklopedicheskii slovar' [Finance and credit encyclopedic dictionary]. Moscow, Finansy i statistika Publ., 2002, 1168 p.
Shatalov S. Nalogovyi kodeks i problemy nalogovogo zakonodatel'stva [Tax code and tax law-related problems]. Bukhgalterskii uchet = Accounting, 2013, no. 4, pp. 2–8.
Shvabauer N. Ofshory raskroyut karty [Offshore will open the card]. Rossiiskaya Biznes-Gazeta, 2011, no. 39. Available at: Link. (In Russ.)
Panayi C. The Common Consolidated Corporate Tax Base – Issues for Member States Opting Out and Third Countries. European Taxation, 2008, no. 3, pp. 114–123.
Cerioni L. The Possible Introduction of Common Consolidated Base Taxation via Enhanced Cooperation: Some Open Issues. European Taxation, 2008, no. 5, pp. 187–195.
