: :inin Kyiv (EET)

Verkhovna Rada starts fighting offshore transactions

The Verkhovna Rada of Ukraine has adopted at first reading a draft law on amendments to the Tax Code of Ukraine on the improvement of tax control over transfer pricing.
A total of 275 MPs voted for this decision, an Ukrinform correspondent reported.
Chairman of the Taxation and Customs Policy Committee Roman Nazirov said that the purpose of this law was to improve the system of the state regulation of transfer pricing, eliminate inconsistencies and specify rules that negatively affect the provision of the tax policy implementation.
MP Oleksandra Kuzhel, in turn, said that the transfer pricing was a serious struggle with offshore, “when our rich people sell products abroad at the price of production and leave the added value among their profit.”
In addition, as stated in the explanatory note, the draft law clarifies the list of controlled transactions and eliminates a tax evasion scheme through the artificial reduction of the number of transactions with a single counterparty. The changes in the Tax Code also provide unification and simplification of accounting on the controlled operations.

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