Yatseniuk wants to prevent hiding of money in offshores

Wednesday, December 17, 2014 - 17:42 (EET) Section: Latest news

The Cabinet of Ministers hopes the parliament will adopt the law on improving tax control over transfer pricing.
Ukrainian Prime Minister Arseniy Yatseniuk said this while opening a government meeting on Wednesday, an Ukrinform correspondent reports.
“The government tables this law [in the Verkhovna Rada] and asks it to adopt it immediately,” he said.
Yatseniuk said that the law should take effect this year: “The taxation of the profit of large companies for 2015 should be introduced under this law.”
“What does this law mean? For example, the ore that costs $100 on the stock exchange is sold to an offshore company for $50, and since this offshore company then sells it for $100, any tax is not paid. Now, no matter how many chains of offshore companies we have, there is a stock exchange price for goods. And Ukraine will get its taxes not from the understated price, but from the real price, which should correspond to the market and exchange value,” the head of government explained.
He said that the law should apply to all financial transactions, and, besides, chemical and steel plants will fall under this law as well. “That is, it will be impossible to hide income in offshore companies from abroad,” he added.
In this regard, Yatseniuk called on Ukrainian big business representatives “to prepare for the submission of fair and open tax returns for 2015 on income tax assessment.”
The premier said that an appropriate department would be formed in the State Fiscal Service to control the so-called transfer pricing.
“We will receive technical assistance from our Western partners to verify whether the selling price corresponds to the global price, to help Ukrainian big business honestly and fairly pay taxes and to track all financial transactions of companies,” he added.