The State Fiscal Service has set up a department for transfer pricing and international taxation that brings together experts representing different units of control bodies. Such a unit has also been established as part of the Office for Big Taxpayers.
“The management vertical of the executive power body responsible for the implementation of the state tax and customs policy now has a single centre for the coordination, analysis, control and development of activities related to international taxation as one of priorities for tax control in Ukraine,” Deputy Minister of Finance Serhiy Verlanov said.
This innovation will allow to ensure a well-coordinated and effective operation of the responsible units controlling transfer pricing as well as will enable tax authorities to react timely and properly to challenges concerning tax-base erosion and profit shifting, which is highly relevant for Ukraine in terms of its commitment to the BEPS Action Plan.
It is planned to set up units responsible for the analysis of documents related to transfer pricing, monitoring of controlled transactions taking into account the sector-related specifics, transfer pricing checks, exchange of tax information, summarizing international taxation practices and coordination procedures involving non-residents and authorities of other countries, international tax cooperation, detection of aggressive tax-planning schemes and misuse of tax conventions.