№ 2/2019

Fìnansi Ukr. 2019 (2): 99–110https://doi.org/10.33763/finukr2019.02.099

SCIENTIFIC-PRACTICAL CONFERENCE

OLIYNYK Yana ¹, CHYZHYKOVA Olena ²

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/
²SHEE “Kyiv National Economic University named after Vadym Hetman”
OrcID ID : https://orcid.org/0000-0002-0410-825X

Institutional implementation of transfer pricing: global context and prospects for Ukraine

Two-thirds of global trade now consists of transactions between members of multinational enterprise groups. The extensive MNC structure requires efficient management and clear coordination between members of the group. The prices at which an enterprise transfers goods and intangible property or provides services to associated enterprises are transfer prices. Problematic aspects of transfer pricing (TP) are subject for academic investigations. Today, not only scientists but also national policy-makers, regulators, and international organizations are concerned with TP. At the same time, despite a large number of scientific publications, the general model of the TP system in the global context is still not sufficiently studied. Corporate activities lead to the erosion of the tax base (the state loses proper tax revenues). The question of searching for "sticking points" in the existing legislation and making the necessary amendments arises, that is why national policy-makers engage experts and cooperate on the basis of joint platforms. The platforms are intended for cooperation activating between countries and international tax organizations – the development and implementation of standards, development of the recommendations, and exchange of information about MNCs activities on a global scale. The authors suggest the next necessary actions for effective TP control in Ukraine based on the following steps: fulfillment of the commitments to implement the BEPS action plan; taking into consideration global experience and coordination of action concerning TP with international institutions (OECD, UN, EU); defining TP as a special system phenomenon within the fiscal policy and creating the appropriate regulatory and structural support for effective coordination between process participants; TP monitoring processes for the improvement and development of the methods of TP risk assessment.

Keywords:transfer pricing, multinational corporations, tax base erosion, BEPS, arm’s length principle

JEL: F21, F23, H25

OLIYNYK Y. . Institutional implementation of transfer pricing: global context and prospects for Ukraine / Y. . OLIYNYK , O. Chyzhykova // Фінанси України. - 2019. - № 2. - C. 99-110.

Article original in Ukrainian (pp. 99 - 110)

Download

Downloads :410

1. Drury, C. (2012). Cost and management accounting. Moscow: YuNITI-DANA [in Russian].

2. Horvath, P. (2006). Controlling. 10 überarb. Aufl. München: Vahlen.

3. Dziuba, P. V. (2005). Transfer pricing in the financial system of TNCs (Master's thesis). Kyiv: Kyivskyi natsionalnyi universytet imeni T. Shevchenka [in Ukrainian].

4. OECD. (2013). Action Plan on Base Erosion and Profit Shifting. Retrieved from www.oecd.org/ctp/BEPSActionPlan.pdf.

5. Zhukova, O. V., Dubnytskyi, V. I., Varenia, V. O. et al. (2014). Transfer pricing: Ukrainian version. Kyiv: Yustinian [in Ukrainian].

6. Makhynich, Yu. S. (2014). Genesis of legal acts in the system of transfer pricing: patterns of European and domestic regulation. Bulletin of the Ministry of Justice of Ukraine, 12, 115-121 [in Ukrainian].

7. Mishyn, M., Kurilov, Ye. (2015). Transfer pricing documentation: international experience. Herald. Officially about taxes, 15. Retrieved from www.visnuk.com.ua/ua/pubs/id/8219 [in Ukrainian].

8. OECD. (2017). OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2017.
doi.org/10.1787/tpg-2017-en

9. Verkhovna Rada of Ukraine. (2010). Tax Code of Ukraine (Act No. 2755-VI, December 2). Retrieved from zakon2.rada.gov.ua/laws/show/2755-17/print1329730624868809 [in Ukrainian].

10. 2017-18 EY Worldwide Transfer Pricing Reference Guide. (n. d.). EY.com. Retrieved from www.ey.com/gl/en/services/tax/international-tax/transfer-pricing-and-tax-effective-supply-chain-management/worldwide-transfer-pricing-reference-guide---country-list.

11. United Nations, Department of Economic and Social Affairs. (2016, October 27). Tax cooperation platform: an important step towards strengthening international tax cooperation. Retrieved from www.un.org/development/desa/ru/news/financing/collaboration-on-tax.html [in Russian].

12. UN, IMF, World Bank and OECD create a new mechanism of cooperation with international tax issues. (2016, April 20). Ukrainian news. Retrieved from ukranews.com/ua/news/423576-oon-mvf-sb-y-oesr-stvoryuyut-novyy-mekhanizm-vzayemodii-z-mizhnarodnykh-podatkovykh-pytan [in Ukrainian].

13. OECD. (n. d.). BEPS 2015 Final Reports. Retrieved from www.oecd.org/ctp/beps-2015-final-reports.htm.

14. Mishyn, M., Kurilov, Ye. (2014). Transfer pricing and BEPS action plan. Herald. Officially about taxes, 16 [in Ukrainian].

15. Korotun, V. I. (2016). Transfer pricing control in Ukraine: problems of formation and perspectives of development. Investments: practice and experience, 24, 42-46 [in Ukrainian].

16. Cabinet of Ministers of Ukraine. (2013). On approval of the action plan for deepening cooperation between Ukraine and the Organization for Economic Cooperation and Development for 2013-2016 (Decree No. 132-p, February 6). Retrieved from zakon.rada.gov.ua/laws/show/132-2013-%D1%80 [in Ukrainian].

17. Memorandum of Understanding between the Government of Ukraine and the Organization for Economic Cooperation and Development to deepen cooperation. (2014, October 7). zakon.rada.gov.ua. Retrieved from zakon.rada.gov.ua/laws/show/966_003 [in Ukrainian].

18. Ministry of Finance of Ukraine. (2018, October 24). Draft law on the implementation of the BEPS Action Plan in Ukraine. Retrieved from www.minfin.gov.ua/news/view/proekt-zakonu-iz-zaprovadzhennia-planu-dii--v-ukraini?category=novini-ta-media&
subcategory=vsi-novini [in Ukrainian].

19. Verkhovna Rada of Ukraine. (2018). About currency and currency transactions (Act No. 2473-VIII, June 21). Retrieved from zakon.rada.gov.ua/laws/show/2473-19 [in Ukrainan].