On 27 September 2017, Larysa Antoshchuk, Manager, Head of the Tax Dispute Resolution Group, KPMG in Ukraine delivered a presentation at Transfer Pricing: Analysis of Litigation and Evidence Base workshop organized by the Tax and Customs Law Committee of the Ukrainian Bar Association.
The objective of the workshop was the analysis of the current judicial practices related to transfer pricing issues.
The experts shared their own cases, advice and predictions on transfer pricing issues.
"Disputes of this type are quite new in Ukraine, drawing a specific interest from company attorneys in terms of compliance with the requirements of transfer pricing legislation. The related judicial practice is currently in a formative stage. We are learning to select the evidence base to prove the circumstances that require both in-depth understanding of the economic substance of the transaction and correct legal formulation. According to the KPMG research on transfer pricing statistics in Ukraine, 50 per cent of court rulings on such disputes in 2017 were made in favor of tax authorities. Notably, in 2014 tax authorities won only 18 per cent of disputes of this category. Such dynamics should mobilize lawyers to work more scrupulously on both the argumentation of claims and the selection of evidence base. Obviously, experts' conclusions on disputes over compliance with the arm’s length principle would be indispensable", Larysa Antoshchuk commented.
At the end of the meeting, the speakers answered attendants’ questions and discussed the role of experts involved in court dispute resolution.