FINANCES OF THE INSTITUTIONAL SECTORS

SVIDERSKA Inna ¹, VOLOSHANIUK Natalia Volodymyrivna

¹Kyiv National Ecomomic Universiry named after Vadym Hetman

Transfer pricing as a tool for financial controlling: issues of the practical use in Ukraine

Reduction of the informational asymmetry between the participants of economic relations incide the enterprise, promotion of the decision-making process to improve the efficiency of the enterprise activity as a whole and to reduce conflicts of interest between individual linear units are main objectives of the transfer pricing as a controlling instrument. The purpose of the article is consideration of the basic pricing methods, used as an important instrument of financial controlling focused on improving financial relations within the enterprise. In order to reduce the manipulation of transfer prices at the legislative level the pricing methods for controlled operations. It is underlined that transfer pricing could provoke a conflict of interests between fiscal authorities and integrated structures. Integrated structures, which include legally separate entities, may regulate the taxable individual enterprises using domestic prices providing the policy of tax optimization. The author substantiated suggestions concerning prohibition of the use of transfer pricing by residents of Ukraine to reduce tax pressure and withdrawal of capital from Ukraine considering the abuse of transfer pricing. It is emphasized the necessity to conclude agreements on pricing in order to harmonize the level of prices between large tax payers and tax authorities and to optimize, as a result, the taxation of enterprises.

Keywords: transfer pricing, regular price, affiliated parties, controlled operation, price determination methods, profitability indicators.

JEL: D40, D49, L10, L11, L16

SVIDERSKA I. . Transfer pricing as a tool for financial controlling: issues of the practical use in Ukraine / I. . SVIDERSKA, N. V. VOLOSHANIUK // Фінанси України. - 2014. - № 8. - C. 97-111.