scholarly journals Formation of conditions for BEPS analysis in Ukraine

2021 ◽  
Vol 2021 (11) ◽  
pp. 88-102
Author(s):  
Olga IVANYTSKA ◽  
◽  
Tetiana KOSHCHUK
Keyword(s):  
Transfer Pricing ◽  
Action Plan ◽  
Financial Statements ◽  
Statistical Information ◽  
Government Agencies ◽  
Profit Shifting ◽  
Country Report ◽  
International Group

The article reveals the problems related to the formation of conditions for analyzing the transfer of profits between countries according to the OECD indicators of Action 11 of the OECD Recommendations on preventing the Base Erosion and Profit Shifting (BEPS Action Plan) in Ukraine. It is established that the calculation of OECD indicators with data on Ukraine may be complicated due to the lack of relevant statistical information, as well as due to the establishment of the process of processing, aggregation and analysis of information from companies (including new reporting – Notification of participation in an international group of companies and transfer pricing reporting according to the “three-tier model”, which includes Сountry-by-country report). It is determined: 1) what information needed to calculate OECD indicators for BEPS analysis is already available in statistical sources and financial statements of companies; 2) what data for these purposes can be obtained by government agencies from new reporting for international groups of companies and their members in Ukraine, which will be submitted by them from 2021 and later; 3) what economic figures will not be available for BEPS analysis according to OECD indicators after the start of these new reporting forms. The necessity of forming organizational bases for collecting and processing domestic data at macroeconomic and microeconomic levels is substantiated in order to include them in global calculations of OECD indicators and use them in determining the effectiveness of BEPS countering measures in Ukraine.

scholarly journals Country-by-country reporting: international experience of implementation

2021 ◽  
Vol 2021 (6) ◽  
pp. 29-39
Author(s):  
Iryna KRYSHTOPA ◽  
◽  
Larysa NIKOLENKO ◽  
Keyword(s):  
Income Distribution ◽  
Tax Evasion ◽  
Information Exchange ◽  
Multinational Enterprises ◽  
Transfer Pricing ◽  
International Experience ◽  
Country Report ◽  
Financial Flows ◽  
National Legislation ◽  
International Group

Considering the tasks set for Ukraine in frames of combating tax evasion of multinational enterprises, it is extremely important to bring the provisions of national legislation in line with international rules of tax administration. This primarily concerns the creation of institutional conditions in order to increase the financial flows transparency of multinational enterprises for tax administrations and enable them to obtain necessary information for identifying and assessing transfer pricing risks.Nowadays, more than 100 countries prepare a country-by-country report of an international group of companies, which discloses data on activities of certain enterprises in accordance with the requirements of national legislation and the unified standard of country-by-country reporting, approved by the OECD [1]. However, the analysis of domestic practice of reporting by countries of international group of companies, as well as the study of other regulations, which application allows metropolitan countries to ensure the transparent level of taxation of their multinational corporations, indicates the need for further improvement of domestic mechanisms for counteracting tax base erosion and exchange of information obtained in the framework of international exchange. This fact actualizes a chosen research topic. It is revealed that information disclosed in country-by-country reports gives the possibility for tax administrations to assess high risks of transfer pricing. In turn, the development of the mechanism for ensuring confidentiality and appropriate use of such reports will oblige taxpayers to careful adhere to transfer pricing rules and mandatory tax information exchange. The investigation of international experience in frames of implementation of uniform standards for the disclosure of information on income distribution and tax payments suggests the importance of country-by-country reporting. And identification of main trends in the field of international initiatives on issues of disclosure of income distribution information by groups of enterprises brings Ukraine closer to the consistent implemen­tation of this approach in practice of international groups of companies.

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 INFLUENCE OF INTERNATIONALIZATION OF TAX LAW ON RUSSIAN TAX LAW ENFORCEMENT IN THE AREA OF CORPORATE TAXATION

2018 ◽  
Vol 1 (4) ◽  
pp. 66-74
Author(s):  
Karina Ponomareva
Keyword(s):  
Law Enforcement ◽  
Information Exchange ◽  
Transfer Pricing ◽  
Action Plan ◽  
Corporate Taxation ◽  
Tax Law ◽  
Profit Shifting ◽  
Direct Taxation ◽  
Legal Method ◽  
Special Rules

Subject. The influence of internationalization of tax law on Russian tax law enforcement in the area of corporate taxation is considered in the article.The purpose of the paper is to analyze influence of internationalization of tax law on Russian tax law enforcement in the area of corporate taxation.Methodology. The author uses methods of theoretical analysis, particularly the theory of integrative legal consciousness, as well as legal methods, including formal legal method and methods of comparative law.Results, scope of application. The development of Russian tax legislation is influenced by acts of international organizations, primarily the Action Plan aimed at combating base erosion and profit shifting (BEPS).Trends of regulation of corporate taxation in relationships with participation of a foreign element are considered in the article. The main issues of realization of norms in the area of corporate direct taxation are brought into light, and namely, taxation of royalties, intra-group expenses, thin capitalization rules and transfer pricing. Tax agreements concluded by the Russian Federation do not contain special rules aimed at combating abuses (in contrast, for example, from European anti-avoidance rules).In recent years Russian tax law introduced institutions that had been established and applied in the tax law of foreign countries. These processes are moving forward and are characterized by frequent changes of legislation, which indicates that the concept of deoffshorization and implementation of the BEPS plan is not always elaborated at the stage of adoption of bills.Conclusions. The author comes to the conclusion that the most relevant and most controversial issues are taxation of payment of royalties, debt financing and intra-group expenses. The practice of applying the CFC rules is just starts forming. In addition, there is a tendency to increase the quality and quantity of information sources used by tax authorities to collect evidence, including the expansion of the practice of information exchange.

scholarly journals GIÁ CHUYỂN NHƯỢNG – NHẬN DIỆN NHỮNG NGUY CƠ THÁCH THỨC VÀ PHẢN ỨNG CỦA CÁC BÊN LIÊN QUAN TRONG KỶ NGUYÊN HỘI NHẬP TOÀN CẦU

2021 ◽  
Vol 36 (06) ◽  
Author(s):  
QUÁCH NGUYỄN ÂN ĐIỂN
Keyword(s):  
Transfer Pricing ◽  
Action Plan ◽  
Viet Nam ◽  
Profit Shifting

Thuế là nguồn thu ngân sách rất cơ bản và quan trọng của một quốc gia, ngày nay các nước trên thế giới luôn quan tâm đến việc nuôi dưỡng nguồn thu từ thuế, đồng thời cũng ra sức chống lại việc thất thu thuế. Đối với các nước giàu có và phát triển, điển hình là nhóm các nước G20, họ đã có những hoạt động hợp tác liên kết chặc chẽ trong việc ngăn chặn việc “Trốn thuế/tránh thuế” của đối tượng nộp thuế, hiện tại,Tổ chức Hợp tác và Phát triển kinh tế (tên viết tắt tiếng Anh là OECD) – là một tổ chức quốc tế được hình thành từ nhóm các nước G20 - đã xây dựng dự án kế hạch hành động chống xói mòn lợi nhuận và chuyển lợi nhuận (Action Plan on Base Erosion and Profit Shifting-viết tắt là BEPS), đề án này đã được nhóm các nước G20 thông qua vào tháng 11/2015, đồng thời OECD cũng đã thiết lập một Diễn đàn hợp tác chung thực hiện các giải pháp của BEPS (Inclusive Framework - Diễn đàn IF). Tháng 7/2017, Việt Nam đã chính thức trở thành thành viên thứ 100 của Diễn đàn IF. Cũng theo đề án BEPS, hoạt động giá chuyển nhượng (Transfer Pricing) là một trong những nội dung đáng quan ngại. Bài viết này tập trung khái quát và làm rõ những nguy cơ thách thức đồng thời kiến nghị một số giải pháp nhằm hạn chế rủi ro về thuế nói riêng và tài chính nói chung.

scholarly journals Implementation of international recommendations for application of a three-tiered approach to transfer pricing documentation in Ukraine

2020 ◽  
Vol 2020 (9) ◽  
pp. 95-109
Author(s):  
Ljudmyla LOVINSKA ◽  
◽  
Yana OLIYNYK ◽  
Maria KUCHERIAVA ◽  
◽  
...  
Keyword(s):  
Information Asymmetry ◽  
Transfer Pricing ◽  
Action Plan ◽  
The State ◽  
Profit Shifting ◽  
Tax Base ◽  
The World ◽  
Level Model ◽  
The Government

The article considers challenges and consequences of introducing a three-level model of transfer pricing documentation in Ukraine. The purpose of study is to assess the state of regulatory support for implementation of Step 13 of the BEPS Action Plan and to identify institutional measures for further implementation of three-tiered documentation on transfer pricing, taking into account the requirements of the Organization for Economic Co-operation and Development (OECD). The authors analyzed the state of accession of countries all over the world to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, in order to counteract the erosion of the tax base and the withdrawal of profits from taxation of the OECD, ratified by the Law of Ukraine dated 28.02.2019 No 2692-VIII. Analysis of national legislation to take into account the requirements of the BEPS Action Plan and the experience of cooperation of the Government of Ukraine with international tax organizations allowed to scientifically substantiate the directions of improvement of national regulations on tax issues and to determine methodology for application of innovative reporting form in the context of further implementation of BEPS Action Plan. It is identified that implementation of a three-tiered reporting model for transfer pricing in Ukraine is at the beginning of the development, in particular legislation. The authors emphasize the importance of counteracting information asymmetry by ensuring the unification of terminology and quality of the database for innovative reporting preparation, in particular, for global documentation on transfer pricing, transfer pricing documentation and Country-by-Country reporting of multinational entities. Within the study it was proved that the organization of the reporting process at all levels of the Three-Level Model of transfer pricing documentation (hereinafter the Three-Level Model) should be aimed at preparing reports that contain reliable information with the maximum exclusion of duplication.

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.

Category of Market Price in Modern Tax Law

2016 ◽  
Vol 4 (7) ◽  
pp. 0-0
Author(s):  
Инна Хаванова ◽  
Inna Khavanova
Keyword(s):  
Transfer Pricing ◽  
Action Plan ◽  
Market Price ◽  
Profit Shifting ◽  
Complex Issue ◽  
Regulatory Changes ◽  
Pricing Rules ◽  
Arm’S Length Principle ◽  
The Difference ◽  
Correct Application

The article is devoted to transfer pricing rules with particular reference to unresolved problems. Its purpose is to outline the complex issue of transfer pricing. The author examines the difference between the concepts of “market price” and price, determined according to the “arm’s length principle”, discusses the basic rules of taxation, principles of determining the price of goods, work or services for taxation purposes. To ensure the correct application of the separate entity approach, countries have adopted the arm´s length principle. This article analyzes initiatives on taxation in the area of corporate taxation (OECD Action Plan on Base Erosion and Profit Shifting (BEPS), Final Reports “Aligning Transfer Pricing Outcomes with Value Creation”). The author points out that the level of control (direct or indirect) in determining interdependence between persons, has its own specific features in different states. The reason behind it is that the problem of transfer pricing does not always arise, but only when subjects establish specific relations. The article characterizes the regulatory changes and developments in Russia.

scholarly journals Substitution across profit shifting methods and the impact on thin capitalization rules

2021 ◽  
Author(s):  
Gideon Goerdt ◽  
Wolfgang Eggert
Keyword(s):  
Multinational Firms ◽  
Transfer Pricing ◽  
Multinational Firm ◽  
Profit Shifting ◽  
Goods And Services ◽  
Internal Goods ◽  
Transfer Prices ◽  
Debt Shifting ◽  
The Impact ◽  
Thin Capitalization

AbstractThin capitalization rules limit firms’ ability to deduct internal interest payments from taxable income, thereby restricting debt shifting activities of multinational firms. Since multinational firms can limit their tax liability in several ways, regulation of debt shifting may have an impact on other profit shifting methods. We therefore provide a model in which a multinational firm can shift profits out of a host country by issuing internal debt from an entity located in a tax haven and by manipulating transfer prices on internal goods and services. The focus of this paper is the analysis of regulatory incentives, $$(i)$$ ( i ) if a multinational firm treats debt shifting and transfer pricing as substitutes or $$(ii)$$ ( i i ) if the methods are not directly connected. The results provide a new aspect for why hybrid thin capitalization rules are used. Our discussion in this paper explains why hybrid rules can result in improvements in welfare if multinational firms treat methods of profit shifting as substitutes.

scholarly journals Laundering Black Money by Means of Offshore Zones: The Negative Impact and Ways to Resolve

2021 ◽  
Vol 8 (523) ◽  
pp. 140-150
Author(s):  
O. T. Zamaslo ◽  
◽  
D. A. Kozak ◽  
Keyword(s):  
National Economy ◽  
Tax Evasion ◽  
Negative Impact ◽  
Action Plan ◽  
International Standards ◽  
Key Factors ◽  
Profit Shifting ◽  
State Budget ◽  
Business Entities ◽  
The Impact

The article is aimed at examining the problem of laundering black money in the offshore jurisdictions. Attention is paid to the key factors that attract economic entities regarding business registration in offshore zones. The impact of the tax burden on the process of moving profits to offshore jurisdictions is considered. The volumes of losses of the State Budget of Ukraine related to tax evasion of the funds placed on the accounts of offshore companies have been studied. The most typical schemes of laundering black money in offshore zones are presented, as well as a number of stages that form the process of laundering are highlighted. Emphasis is placed on round tripping investment as a key mechanism for returning foreign funds to a resident in the form of foreign direct investment, the main factors in the use of round trip transactions by Ukrainian business entities are allocated. Attention is drawn to the percentage of countries, which are the largest investors in Ukraine. It is determined that the use of offshore schemes by Ukrainian businesses contributes to the growth of the shadowing of the national economy and causes a direct negative impact on Ukrainian financial security, which is confirmed by the results of the National Risk Assessment 2019. Emphasis is placed on the OECD / G20 Base Erosion and Profit Shifting (BEPS) initiative to prevent money laundering offshore, and Ukraine’s key measures to implement relevant international standards are specified. Prospects for further research in this direction are to identify measures directed towards deoffshorization of the national economy, including through the implementation of the BEPS 2.0 Action Plan.

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