RISK-ORIENTED APPROACH IN THE SYSTEM OF TAX CONTROL FOR TRANSFER PRICING

Abstract

Introduction. Protection of the national interests of the country in terms of determining the correct basis of taxation of the profit of the organization with its fair relation to one or another jurisdiction remains an urgent issue in the field of transfer pricing tax control on the agenda. The analysis of the existing practice of tax control over transfer pricing indicates the use of a risk-oriented approach in the activities of tax authorities, the main purpose of which is to identify sectors, participants and operations of transfer pricing with a high degree of risk. Purpose. The purpose of the article is to form methodological and practical provisions for the application of a risk-oriented approach in the system of tax control over transfer pricing as a proposal for legislative regulation and unification in the system of state control and audit in the field of taxation. Methods. As research methods to achieve the set goal, general scientific methods of cognition were used, including: induction and deduction – during the study of the genesis and the need to apply a risk-oriented approach in the activities of control and inspection bodies; analysis and synthesis – during the study of foreign experience in transfer pricing risk management as a methodological basis for the development of a domestic legislative system of a risk-oriented approach in the process of tax control over transfer pricing. Results. By risk in the field of transfer pricing, we propose to understand the probability of not receiving tax revenues to the budget in connection with the violation by taxpayers of the rules of transfer pricing in terms of the implementation of controlled transactions with non-compliance with the rules of "outstretched arm". Accordingly, a risk-oriented approach to the implementation of tax control over transfer pricing is understood as the application of tools for the identification and assessment of transfer pricing risks for the purpose of qualitative selection of taxpayers carrying out transactions classified as controlled, on issues of compliance with the principle of "outstretched hand" in order to optimize resource provision tax control process. Own transfer pricing risk management in terms of their identification and assessment is represented by a certain set of tools that will ensure the adequacy and suitability of the results for the selection of taxpayers as the object of tax control. In turn, tools for identifying and determining the level of risks make up a set of analytical procedures for evaluating (quantitative or qualitative) a certain set of indicators (indicators) of risk. The basis for the development of a domestic methodological base for the application of a risk-oriented approach in the tax audit system for transfer pricing definitely exists and is represented by a number of international methodological recommendations and manuals, one of which was discussed in the article. Conclusion. In order to form a high-quality methodological toolkit that will be used in the process of tax control over transfer pricing, international developments in the field of transfer pricing risk management should be guided by their mandatory adaptation to domestic conditions.