The Federal Tax Service of Russia sent an overview of court decisions on transfer pricing to lower authorities for use. This overview presents the cases won by the tax authority, during which transactions between interdependent individuals were checked. According to representatives of the Federal Tax Service, in these transactions it was necessary to apply the method of comparable market prices. In two cases, the cost approach was also applied.
The taxpayer was unable to prove the impossibility of calculating prices by the method of comparable market prices due to the fact that quotes used by the Federal Tax Service could not be applied to these transactions for various reasons. Having considered this argument of the taxpayer, the courts rejected it and found it unreasonable for taxpayers to use other methods of determining prices. It is important to be aware of the overview for those an economic entries who make controlled transactions.
It should be taken into account that while verify the completeness of tax calculation and payment in relation to transactions between interdependent individuals, the inspection of Federal tax service is entitled to apply other methods and establish the proceeds of the transaction if it concludes that the taxpayer received unreasonable benefit from using non-market prices.