The Central Office of the State Fiscal Service in Kyiv, with the support of EUCON International Legal Center, hosted a free workshop for businesses on Transfer Pricing: preparation of the report on controlled transactions.
The seminar took place on September 27, 2017, in the premises of the Central Office of the State Fiscal Service of Ukraine in Kyiv and brought together about 70 participants.
Larysa Vrublevska, auditor, partner, head of transfer pricing at EUCON ILC took part in the event as a speaker. Among representatives from the tax authorities were Zlata Lahutina – Deputy Chief of the State Fiscal Service in Kyiv, Vyacheslav Kruhlyak – Deputy Head of the Division of Transfer pricing inspections at Department of Tax and Customs Audit of the State Fiscal Service of Ukraine, Iryna Syvolap – Head of the Department of cooperation in transfer pricing issues of the Department of taxes and fees from legal entities of the State Fiscal Service of Ukraine, Susanna Mihonik – Head of Department of audit of separate objects and categories of payers of the State Fiscal Service of Ukraine in Kyiv.
Larysa Vrublevska told the participants about the liability of taxpayers for violating the tax legislation in the field of TP, as well as about the application of penalties in accordance with the new rules. Larysa noted that distinction of such concepts as a “failure to submit of a report”, “failure to declare individual transactions” and “failure to submit documentation”, as well as their late submission is a fairly liberal norm.
“Article 39 of the Tax Code of Ukraine contains a norm according to which the payment of a fine for failure to submit a report does not exempt the taxpayer from the duty to submit such a report. It is to be submitted within 30 days, and if the payer fails to submit it after paying a fine, then the taxpayer imposes new penalties in the amount of five living wages for able-bodied persons for each day of delay “, – explained Mrs. Vrublevska.
The same penalties are imposed on reports that were not submitted for previous reporting periods, but the new penalties will be charged at the new rates for each day of non-submission of the report starting from January 1, 2017.
Larysa also drew attention to the letter of the SFS dated 20.07.17, which clarified the order of sending and handing requests for TP documentation. Noting that the request for submission of the documentation is considered sent (handed), if either handed over to the taxpayer or his representative personally, or sent to the last known location with a delivery notice.
During the seminar, participants discussed the latest legislative innovations in the field TP, procedure for preparing and submitting the report on controlled transactions, procedure for correcting errors, choice of the TP method and typical errors of taxpayers that were identified during the audits.