scholarly journals Assessment of Ukraine’s readiness for international automatic exchange of information for tax purposes

2021 ◽  
Vol 2021 (2) ◽  
pp. 85-97
Author(s):  
Yana OLIYNYK ◽  
◽  
Maria KUCHERIAVA ◽  
Keyword(s):  
Organizational Support ◽  
Transfer Pricing ◽  
Action Plan ◽  
Competent Authority ◽  
International Exchange ◽  
General Distribution ◽  
Multinational Group ◽  
Exchange Of Information ◽  
Constituent Element ◽  
State Tax

The implementation of a constituent element of a three-tier model of transfer pricing documentation – a report in the context of the countries of the multinational group of companies – is a prerequisite for Ukraine's joining the Multilateral Competent Authority Agreement as a measure for implementation of Action 13. The Ministry of Finance of Ukraine, together with the State Tax Service of Ukraine, developed a Roadmap on preparation and harmonization of the draft regulatory legal acts necessary to ensure implementation of the Law of Ukraine dated January 16, 2020 No. 466-IX, according to which the development, approval and registration of the regulatory legal acts for the country-by-country reporting and the procedure for filling it out must be completed until November 23, 2020. The purpose of the article is to determine the institutional basis for improving the legislation of Ukraine in the field of international exchange of information for tax purposes, in particular, the development of recommendations and proposals of the OECD in the field of country-by-country reporting of the multinational group of companies. In the course of study, the authors examined the OECD documents that form the institutional basis for the development of methodological and organizational support for reporting in the context of countries. In accordance with Action 13 of the BEPS Action Plan, jurisdictions of the world have undertaken to increase the transparency of taxation by enshrining in law the requirement to disclose information on the general distribution of their income, taxes and other indicators by the location of economic activity of multinational group of companies. The comparative analysis of the termino­logy and content of information to be disclosed in the country-by-country reporting in accordance with OECD documentation and Law № 466-IX shows that there is a discrepancy in terminology, indicators and degree of data disclosure in some indicators.

scholarly journals Implementation of step 13 of the BEPS Action Plan in the context of introducing automatic exchange of information for tax purposes

2021 ◽  
Vol 2021 (10) ◽  
pp. 41-47
Author(s):  
Yana OLIYNYK ◽  
Keyword(s):  
Multinational Enterprises ◽  
Transfer Pricing ◽  
Action Plan ◽  
International Exchange ◽  
Appropriate Use ◽  
International Group ◽  
Exchange Of Information ◽  
Multilateral Agreement ◽  
Tax Legislation ◽  
Model Action

The precondition for Ukraine's accession to the multilateral agreement on automatic exchange of interstate reports is the introduction of the Report by countries of the international group of companies (hereinafter - the intercountry report), which is part of the OECD-recommended three-tier transfer pricing documentation model (Action Plan 13, BEPS Action Plan 13). It has been proven that the implementation of the intercountry report is in the early stages of the implementation of Step 13(tax legislation establishes the obligation of multinational enterprises to submit such reports; the form and procedure for its preparation are designed , but there is no mechanism for ensuring confidentiality and appropriate use of information of such reports). The conclusion is made on the need to further improve the legislation of Ukraine in the field of international exchange of information for tax purposes and the relevance of research on these issues.

scholarly journals THE INFLUENCE OF BEPS INITIATIVES ON FORENSIC EXPERTISE CONCERNING THE ISSUE OF TRANSFER PRICING

2020 ◽  
pp. 575-584
Author(s):  
I. Hrinenko ◽  
Yu. Hrinenko
Keyword(s):  
Tax Evasion ◽  
Transfer Pricing ◽  
Action Plan ◽  
Competent Authority ◽  
The State ◽  
Economic Activities ◽  
Profit Shifting ◽  
State Budget ◽  
Foreign Companies ◽  
Mutual Agreement

Ukraine has joined the BEPS (Base Erosion and Profit Shifting) action plan to combat tax evasion and increase tax transparency around the world. In other words, the state must respond appropriately to ensure the taxation of profits in the country where the taxpayer is engaged in economic activities. Such actions will reduce the transfer of capital to jurisdictions with low levels of taxation, which in turn will help to increase the revenues of the state budget. With regard to the implementation of the provisions of the BEPS Action Plan, Law No. 465-IX introduced the concept of taxation of profits of controlled foreign companies at the level of the controlling entity; introduced a three-tier documentation structure for international groups of companies, which includes transfer pricing documentation (local file), global documentation (master file) and country-by-country reporting; implements provisions 8 to 10 of the BEPS plan to control the distribution of functions, risks and intangible assets within a group of companies, improve the rules for commodity transactions by eliminating the restriction on the use of stock quotes of certain exchanges and allowing the use of quotations for such commodities; the procedure for carrying out the mutual agreement procedure has been determined, which provides for the mechanism of submitting the application for the consideration of the case under the mutual agreement procedure, the requirements for such application, the procedure for the action of the competent authority, etc .; introduced the concept of taxation of dividends equal to dividends, which provides for adjustments to the methodology and procedures envisaged to control transfer pricing when conducting transactions with non-residents.

scholarly journals Corporate Income Shifting in an Era of Tax Multilateralism: The Impact of Exchange-of-Information Agreements

2021 ◽  
Vol 69 (2) ◽  
pp. 357-389
Author(s):  
Devan Mescall ◽  
Paul Nielsen
Keyword(s):  
Multinational Corporations ◽  
Multinational Enterprises ◽  
Transfer Pricing ◽  
Empirical Studies ◽  
Annual Reports ◽  
Income Shifting ◽  
Exchange Of Information ◽  
Pricing Rules ◽  
Using Data ◽  
The Impact

Using data from the annual reports of over 100,000 subsidiaries of multinational enterprises (MNEs) from 55 countries between 2003 and 2012, the authors of this article investigate the impact of exchange-of-information agreements ("EOI agreements") on tax-motivated income shifting. Transparency created by the signing of EOI agreements is expected to reduce the tax-motivated shifting of income by multinational corporations. Whether such agreements affect the income-shifting behaviour of multinational corporations is an unanswered question. The authors find evidence that, on average, EOI agreements do have an impact on tax-motivated income shifting. Additionally, they find that more advanced, modern EOI agreements are associated with a larger decrease in tax-motivated income shifting compared to the impact of early EOI agreements. This evidence challenges the prevalent assumption in empirical studies that EOI agreements are homogeneous. Supplemental analyses suggest that factors that affect the information asymmetry between MNEs and tax authorities, such as corporations with high levels of intangibles and tax authorities with strong transfer-pricing rules and enforcement, can diminish or enhance the effectiveness of EOI agreements in moderating tax-motivated income shifting. The evidence provided by this study shows that consideration of the tax authorities' information environment and the substance of an EOI agreement is essential when assessing the impact of such an agreement on the tax behaviour of sophisticated taxpayers such as multinational corporations.

scholarly journals International Exchange of Information in the Field of Direct Taxation

2021 ◽  
Vol 15 ◽  
pp. 107-115
Author(s):  
Karel Brychta ◽  
Pavel Svirák
Keyword(s):  
Czech Republic ◽  
Information Exchange ◽  
International Exchange ◽  
Budget Deficits ◽  
Double Taxation ◽  
Mutual Cooperation ◽  
The Czech Republic ◽  
Direct Taxation ◽  
Exchange Of Information ◽  
The Given

In connection with continually widening public budget deficits and related attempts of States to remove (or at least to eliminate) unfair tax practices, issues regarding the exchange of information, which is necessary for the proper performance of provisions of conventions for the avoidance of double taxation and/or national laws, have become topical. The purpose of this paper which includes starting points for subsequent analyses is to describe and assess the existing situation in the area of enshrinement of the concept of exchange of information in current conventions for avoidance of double taxation concluded by the Czech Republic according to the state valid on 1 January 2013. Having regard to this objective defined, the authors ignore other aspects such as the existence of memoranda of mutual cooperation concerning the exchange of information, existence of tax information exchange agreements concluded by the Czech Republic and Euroepan Union law in the given area and their contents. They briefly refer to these and other aspects in the chapter called “Discussion” where they point to other research possibilities in this area.

scholarly journals Transfer pricing as a means of the state tax base optimization

2019 ◽  
Vol 31 (1) ◽  
pp. 100-107
Author(s):  
A. Krutova ◽  
O. Nesterenko ◽  
M. Levina
Keyword(s):  
Transfer Pricing ◽  
Transfer Price ◽  
Price Formation ◽  
Tax Base ◽  
Dialectical Approach ◽  
Pricing Process ◽  
State Tax ◽  
Analysis And Synthesis ◽  
Theoretical Foundations

This study is aimed at development of the theoretical foundations of transfer pricing mechanism implementation at Ukrainian enterprises. Methods. The article uses processed by analytical alignment data of pricing methods analysis. Achievement of the objectives was carried out with help of general and special research methods, namely: dialectical approach, analysis and synthesis, systematization and generalization Results. Developed classification of pricing models is presented in this research with separation of the transfer pricing methods group, which are an effective tool of international tax planning transparency increasing, taxation stability ensuring and eliminating the possibility of moving profits to other tax jurisdictions. Transfer price formation stages matrix is developed which divides transfer pricing process on five stages: data collection, functional analysis, economic analysis, accounting procedures, reporting. The study tested the possibility of implementation in Ukraine of steps 8-10 of the BEPS plan as relevant for solving problems caused by tax base erosion. Conclusions. Developed in the article matrix of the transfer price formation stages will contribute to effective implementation of BEPS steps relating to pricing control.

scholarly journals TRANSFER PRICES: PREREQUISITES FOR USE IN MANAGEMENT ACCOUNTING AND TAX ADMINISTRATION

2021 ◽  
Vol 2 (162) ◽  
pp. 71-77
Author(s):  
O. Vlasova
Keyword(s):  
Production Process ◽  
International Business ◽  
Negative Impact ◽  
Management Accounting ◽  
Transfer Pricing ◽  
Action Plan ◽  
Current Trend ◽  
Tax Administration ◽  
Transfer Prices ◽  
The Impact

Today, the issues of transfer pricing come to the fore in the ranking of current problems of tax administration not only in Ukraine but also in the world as a whole. This is due to the need for tax control to ensure price equality between related and independent entities in international business as a measure to combat the erosion of the tax base and the withdrawal of profits from taxation. The article presents a structured analysis of research by foreign and domestic scientists on transfer pricing in the field of management accounting or tax control. In particular, the grouping of views of scientists and practitioners on the nature and role in the accounting and analytical system of transfer pricing from the point of view of management accounting and tax administration. Study of the impact on the practice of transfer pricing methods of the picture of economic reality distorted by the negative impact of the COVID-19 pandemic. The need to use the transfer pricing mechanism in management accounting is due to the current trend of decentralization of management, and a prerequisite - the desire of top management to accelerate the production process, accelerate the turnover of equity and maximize profits. The advantages of using transfer pricing in management accounting to accelerate the production process and maximize profits, which led to the creation of corporations with the final technological cycle. It is also established that when deciding on the use of such a tool of internal pricing, one should keep in mind the cautions analyzed in the article. The preconditions for the introduction of tax control over transfer pricing in international business, as well as the basic laws and regulations in force in the global and Ukrainian economic space. The necessity and validity of the application of the OECD International Guidelines on Transfer Pricing, despite the provisions of Art. 39 of the Tax Code of Ukraine The ways of further development of tax control over transfer pricing within the framework of the BEPS Action Plan in Ukraine are considered. The need for further research on solving the problems of transfer pricing in the field of management accounting and taxation was identified, especially on the preparation of an information basis to justify the compliance of transfer prices with «Arm’s length principle».

scholarly journals TAX EXCHANGE OF INFORMATION AND INTERNATIONAL COOPERATION IN BRAZIL

2015 ◽  
Vol 11 (1) ◽  
pp. 13-35 ◽  
Author(s):  
Heloisa Estellita ◽  
Frederico Silva Bastos
Keyword(s):  
International Cooperation ◽  
Tax Evasion ◽  
Legal Framework ◽  
Global Dimension ◽  
International Exchange ◽  
Tax Administration ◽  
International Treaties ◽  
Exchange Of Information ◽  
The Right ◽  
Supreme Court Rulings

Globalization and internationalization of companies are phenomena that need to be considered by modern tax administrations. In many situations, such as tax evasion, harmful tax competition and money laundering, domestic statutes seem to be ineffectual in a global dimension. Fo cope with that, new forms of regulation and regulators emerge. Under this view, an effort towards signing international treaties, conventions and agreements seems to be a feasible solution. The brazilian legal framework contains principles and rules that make international cooperation and exchange of information (eoi) with other countries possible. Furthermore, the brazilian tax administration has wide-ranging access powers to obtain information for international exchange purposes and has the tools to coercively produce such information. Brazil is following the right path to implement international exchange of information standards. However, there are some obstacles that need to be fixed for a more efficient implementation of these mechanisms. This article examines some topics of the brazilian legal and institutional framework on the tax exchange of information, such as a new model of approach of the tax administration, the tax transparency agenda and the international agreements on eoi matters, the brazilian supreme court rulings under bank secrecy and the rights of brazilian taxpayers regarding eoi.

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