Published since September 1958

№ 10/2021

Ekon Ukr. 2021 (10): 52–66https://doi.org/10.15407/economyukr.2021.10.052

ECONOMIC AND LAW

УДК 657.421.3

JEL: С02, D04, E61, F19, G14

¹Kyiv National University of Trade and Economics, Research ID : http://www.researcherid.com/rid/https://publons.com/researcher/1798225/olena-fomina/ https://www.scopus.com/authid/detail.uri?authorId=36069147400
OrcID ID : https://orcid.org/https://orcid.org/0000-0002-4962-3298
²Kyiv National University of Trade and Economics, Research ID : http://www.researcherid.com/rid/
OrcID ID : https://orcid.org/https://orcid.org/0000-0002-3811-683X

FORENSIC ECONOMIC EXAMINATION OF TRANSFER PRICING

The integration of national economies and markets, the ability of large corporations to conduct international business, the development of the digital sector of the economy contribute to global trends in the globalization of the international taxation system. The exchange of tax information and the conduct of joint tax audits by the tax authorities necessitate the unification of approaches to transfer pricing by transnational companies. The intensification of tax audits by tax authorities on transfer pricing issues leads to tax disputes, including those that are considered in court. Administrative litigation involves the use of an effective tool in resolving tax disputes on transfer pricing, namely forensic economic examination.
The peculiarities of conducting tax audits on transfer pricing and the use of forensic economic examination as an effective mechanism in tax disputes on transfer pricing are studied. The analysis of judicial practice in this area allowed to establish groups of disputes on transfer pricing, which are considered by the Administrative Court of Cassation within the Supreme Court. It is established that the consideration of tax disputes on transfer pricing includes three mandatory elements: economic analysis, facts (circumstances) and the legal component (tax legislation). Forensic economic examination is an effective tool for resolving pre-trial or investigative conflicts of interest between the tax service and the taxpayer of the “economic analysis” component. Approaches to the formulation of questions submitted for the decision of forensic economic examination on transfer pricing are studied. It is determined that the conclusions of forensic experts form a qualitative and thorough evidence base of taxpayers in tax disputes in the field of transfer pricing.

Keywords:transfer pricing; connected entities; controlled operations; BEPS; tax disputes in the field of transfer pricing; forensic economic examination on transfer pricing

Article original in Ukrainian (pp. 52 - 66)

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The article was received by the Editorial staff on April 27 , 2021

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