The authorities want to increase fines for withdrawing profits through intragroup transactions

The authorities want to strengthen control over transactions between related parties – a business management tool that involves the transfer of a product or service from one subsidiary to another, for example from a manufacturer to a trading company. Discussions on amendments to the Tax Code are being conducted between the Ministry of Finance, the Federal Tax Service and large businesses, whose interests are represented by the Russian Union of Industrialists and Entrepreneurs (RSPP), two sources familiar with the bill told Vedomosti. The information was also confirmed by an interlocutor close to the government and a source in one of the largest companies. One of the key changes concerns the approach to calculating fines for violation of transfer pricing rules (TP), i.e., the value that participants of the same holding use when buying and selling.