Russian President Vladimir Putin (L) and Russian Finance Minister Alexei Kudrin (R).
Photo: Dmitry Azarov
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Federal Tax Service Fails to Agree with Business on Prices
// Intra-group transactions might become the subject of a special kind of tax checks
Russia’s Federal Tax Service (FNS) said yesterday that it thinks it unnecessary to introduce from 2010 the mechanism of preliminary coordination of intra-group transaction costs. FNS claims that the possibility of transfer pricing should be postponed. Meanwhile, it asks for allowing it to carry out separate checks of taxpayers. Even presidential administration thinks the draft bill to be too strict this way.
Russian Ministry of Finance prepared a draft bill on preventing violations when using transfer prices. It suggests introducing a large list of transactions for which FSN could add up taxes if it finds the prices of deals to be non-market.
However, adopting the bill might be postponed. FSN said yesterday that it thinks it unnecessary to introduce the new mechanism in coming years before 2010.
Russian Union of Industrialists and Entrepreneurs (RSPP) said that it is tax checks suggested by FSN that are unnecessary.
The government will consider the bill is March-April 2007. Those who created the draft bill say it is strict, but justified.
www.kommersant.com
All the Article in Russian as of Feb. 27, 2007
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