The Ministry of Finance and the Federal Tax Service have developed a bill on the prevention of currency violations

The Ministry of Finance and the Federal Tax Service have developed a bill that should prevent businesses from violating currency laws by using non-market prices in transactions. This was announced by State Secretary-Deputy Minister of Finance Alexey Sazanov.

According to the deputy minister, the issue of “improving the mechanism for controlling prices in transactions between related parties in order to reduce the possibility of tax evasion” is being considered. “The bill developed by the Ministry of Finance of Russia and the Federal Tax Service of Russia conceptually changes the approach to the administration of transfer pricing (transfer pricing.— “Ъ”) — the circle of interdependent persons is expanding, the depth of the audit is increasing, fines are increasing (up to 40% of the tax base adjustment), the approach to determining the market price is being improved,” Mr. Sazanov said at a meeting with business at the B1 company event (quote from “RIA News”).

The Deputy Minister said that it is planned to introduce the possibility of tax authorities adjusting prices in transactions between related parties to the median value of the market price range, and not to the minimum.

Leonid Uvarchev