Tax Code, N 146-FZ | Art. 105.14 Tax Code of the Russian Federation

Article 105.14 of the Tax Code of the Russian Federation. Controlled transactions (current version)

1. For the purposes of this Code, controlled transactions are transactions between related parties (taking into account the specifics provided for in this article). For the purposes of this Code, the following transactions are considered transactions between related parties:

1) a set of transactions for the sale (resale) of goods (performance of work, provision of services) made with the participation (through mediation) of persons who are not interdependent (taking into account the features provided for in this subclause). The set of transactions specified in this subclause is equated to a transaction between interdependent persons, without taking into account the presence of third parties with the participation (through mediation) of which such set of transactions is carried out, provided that such third parties, not recognized as interdependent and participating in the specified set transactions:

do not perform any additional functions in this set of transactions, with the exception of organizing the sale (resale) of goods (performance of work, provision of services) by one person to another person recognized as interdependent with this person;

do not assume any risks and do not use any assets to organize the sale (resale) of goods (performance of work, provision of services) by one person to another person recognized as interdependent with this person;

2) transactions in the field of foreign trade in goods of world exchange trade;

3) transactions, one of the parties to which is a person whose place of registration, or place of residence, or place of tax residence is a state or territory included in the list of states and territories approved by the Ministry of Finance of the Russian Federation in accordance with subparagraph 1 of paragraph 3 of Article 284 of this Code. For the purposes of this subparagraph, if the activity of a Russian organization forms a permanent establishment in a state or territory included in the list specified in this subparagraph, and the analyzed transaction is related to this activity, then in part of this analyzed transaction such organization is considered as a person whose place of registration is a state or territory included in the specified list.

2. A transaction between interdependent persons, the place of registration, or the place of residence, or the place of tax residence of all parties and beneficiaries in which the Russian Federation is considered controlled (unless otherwise provided for in paragraphs 3, 4 and 6 of this article) if there is at least one of the following circumstances:

1) the parties to the transaction apply different rates for corporate income tax (except for the rates provided for in paragraphs 2 - 4 of Article 284 of this Code) to the profit from the activity within which the specified transaction was concluded;

2) one of the parties to the transaction is a taxpayer of the mineral extraction tax, calculated at a tax rate established as a percentage, and the subject of the transaction is the extracted mineral resource, which is recognized for the specified party to the transaction as an object of taxation by the mineral extraction tax, the extraction of which is taxed according to tax rate set as a percentage;

3) at least one of the parties to the transaction is a taxpayer applying one of the following special tax regimes: a taxation system for agricultural producers (single agricultural tax) or a taxation system in the form of a single tax on imputed income for certain types of activities (if the corresponding transaction is concluded within the framework of such activity), while among other persons who are parties to the specified transaction, there is a person who does not apply the specified special tax regimes;

4) one of the parties to the transaction is exempt from the obligations of a taxpayer of corporate income tax;

5) has become invalid. - Federal Law of August 3, 2018 N 302-FZ;

6) the transaction simultaneously satisfies the following conditions:

one of the parties to the transaction is a taxpayer specified in paragraph 1 of Article 275.2 of this Code, and takes into account income (expenses) from such a transaction when determining the tax base for corporate income tax in accordance with Article 275.2 of this Code;

any other party to the transaction is not a taxpayer specified in paragraph 1 of Article 275.2 of this Code, or is a taxpayer specified in paragraph 1 of Article 275.2 of this Code, but does not take into account income (expenses) on such a transaction when determining the tax base for corporate income tax in in accordance with Article 275.2 of this Code;

7) has become invalid. - Federal Law of August 3, 2018 N 302-FZ;

8) at least one of the parties to the transaction is a corporate research center specified in the Federal Law "On the Skolkovo Innovation Center" (hereinafter in this Code - a corporate research center), or a participant in the project in accordance with Federal Law No. 216 of July 29, 2017 -FZ “On innovative scientific and technological centers and on amendments to certain legislative acts of the Russian Federation”, applying exemption from the duties of a taxpayer of value added tax in accordance with Article 145.1 of part two of this Code;

9) at least one of the parties to the transaction applies during the tax period an investment tax deduction for corporate income tax provided for in Article 286.1 of this Code;

10) at least one of the parties to the transaction is a taxpayer of the tax on additional income from the production of hydrocarbon raw materials and income (expenses) from such a transaction are taken into account when determining the tax base for the tax on additional income from the production of hydrocarbon raw materials.

3. Transactions provided for in paragraph 1 of this article are considered controlled if the amount of income from transactions between these persons for the corresponding calendar year exceeds 60 million rubles.

Transactions provided for in paragraph 2 of this article are considered controlled if the amount of income from such transactions between these persons for the corresponding calendar year exceeds 1 billion rubles.

4. Regardless of whether the transactions satisfy the conditions provided for in paragraphs 1 - 3 of this article, the following transactions are not considered controlled:

1) the parties to which are participants of the same consolidated group of taxpayers formed in accordance with this Code (except for transactions the subject of which is an extracted mineral resource recognized as an object of taxation by the mineral extraction tax, the extraction of which is taxed at the tax rate, established as a percentage, as well as transactions, income (expenses) for which are taken into account when determining the tax base for the tax on additional income from the production of hydrocarbons);

2) the parties to which are persons who simultaneously satisfy the following requirements:

these persons are registered in one subject of the Russian Federation;

these persons do not have separate divisions on the territories of other constituent entities of the Russian Federation, as well as outside the Russian Federation;

these persons do not pay corporate income tax to the budgets of other constituent entities of the Russian Federation;

these persons do not have losses (including losses from previous periods carried forward to future tax periods) accepted when calculating corporate income tax;

there are no circumstances for recognizing transactions carried out by such persons as controlled in accordance with subparagraphs 2 - 7 of paragraph 2 of this article;

3) transactions between taxpayers specified in paragraph 1 of Article 275.2 of this Code, carried out by them when carrying out activities related to the production of hydrocarbon raw materials in a new offshore hydrocarbon deposit, in relation to the same field (subsoil plot - before the allocation of the corresponding subsoil plot the first new offshore hydrocarbon field);

4) interbank loans (deposits) with a maturity of up to seven calendar days (inclusive);

5) in the field of military-technical cooperation of the Russian Federation with foreign states, carried out in accordance with Federal Law of July 19, 1998 N 114-FZ “On military-technical cooperation of the Russian Federation with foreign states”;

6) transactions for the provision of sureties (guarantees) if all parties to such a transaction are Russian organizations that are not banks;

7) transactions for the provision of interest-free loans between related parties, the place of registration or place of residence of all parties and beneficiaries in which is the Russian Federation;

8) transactions involving the assignment by a taxpayer-bank of rights (claims) in the event that such assignment of rights (claims) is carried out as part of the implementation of measures provided for by the plan of participation of the Bank of Russia in the implementation of measures to prevent bank bankruptcy, or in the event that the assignment of rights (claims) ) is carried out in accordance with the procedure defined by Part 1 of Article 5 of the Federal Law of July 29, 2018 N 263-FZ “On Amendments to Certain Legislative Acts of the Russian Federation”.

5. Transactions provided for in subparagraph 2 of paragraph 1 of this article are considered controlled if the subject of such transactions are goods included in one or more of the following product groups:

1) oil and goods produced from oil;

2) ferrous metals;

3) non-ferrous metals;

4) mineral fertilizers;

5) precious metals and precious stones.

6. The codes of the goods listed in paragraph 5 of this article, in accordance with the Commodity Nomenclature of Foreign Economic Activity, are determined by the federal executive body exercising the functions of developing state policy and legal regulation in the field of foreign trade.

7. Transactions provided for in subparagraphs 2 and 3 of paragraph 1 of this article are considered controlled if the amount of income from such transactions made with one person for the corresponding calendar year exceeds 60 million rubles.

8. For the purposes of this Code, the concept of “foreign trade in goods” is used in the meaning determined by the legislation of the Russian Federation on foreign trade activities.

9. For the purposes of this article, the amount of income from transactions for a calendar year is determined by adding the amounts of income received from such transactions with one person (interdependent persons) for the calendar year, taking into account the procedure for recognizing income established by Chapter 25 of this Code. When determining the amount of income from transactions, the federal executive body authorized for control and supervision in the field of taxes and fees, for the purposes of this article, has the right to check the compliance of the amounts of income received from transactions with the market level, taking into account the provisions of Chapter 14.2 and Chapter 14.3 of this Code.

10. At the request of the federal executive body authorized for control and supervision in the field of taxes and duties, the court may recognize a transaction as controlled if there are sufficient grounds to believe that the specified transaction is part of a group of similar transactions made in order to create conditions under which such a transaction would not meet the criteria of a controlled transaction established by this article.

11. Recognition of transactions as controlled is carried out taking into account the provisions of paragraph 13 of Article 105.3 of this Code.

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Commentary to Art. 105.14 Tax Code of the Russian Federation

The commented article establishes the procedure and conditions for recognizing transactions as controlled. In addition, it defines the conditions under which transactions are equated to transactions between related parties, and the circumstances under which transactions are not considered controlled. The purpose of introducing the institution in question into the legislation on taxes and fees is to establish a special procedure for exercising tax control.

Paragraph 1 of the commented article reveals the concept of controlled transactions. The main feature of such transactions is that its parties must be interdependent persons, i.e. persons who, due to the existing features between their relationships, can influence the conditions and (or) results of transactions made by these persons, and (or) the economic results of the activities of these persons or the activities of the persons they represent (see Article 105.1 of the Tax Code of the Russian Federation and commentary To her).

For the purposes of the commented Code, the following transactions are equated to transactions between interdependent persons (recognized as controlled): 1) a set of transactions for the sale (resale) of goods (performance of work, provision of services) made with the participation (through mediation) of persons who are not interdependent. The specified set of transactions is equated to a transaction between interdependent persons, without taking into account the presence of third parties with the participation (through mediation) of whom such a set of transactions is carried out, provided that such third parties, not recognized as interdependent and taking part in the specified set of transactions: ( 1) do not perform any additional functions in this set of transactions, with the exception of organizing the sale (resale) of goods (performance of work, provision of services) by one person to another person recognized as interdependent with this person; (2) do not assume any risks and do not use any assets to organize the sale (resale) of goods (performance of work, provision of services) by one person to another person recognized as interdependent with this person; 2) transactions in the field of foreign trade in goods of world exchange trade; 3) transactions, one of the parties to which is a person whose place of registration, or place of residence, or place of tax residence is a state or territory included in the list of states and territories approved by the Ministry of Finance of the Russian Federation in accordance with subpara. 1 clause 3 art. 284 Tax Code of the Russian Federation. If the activity of a Russian organization forms a permanent representative office in a state or territory included in this list and the analyzed transaction is related to this activity, then, for the purposes of this analyzed transaction, such an organization is considered as a person whose place of registration is a state or territory included in this list.

The first group of transactions, equated for tax control purposes to transactions between related parties, includes primarily commission agreements (Chapter 51 of the Civil Code of the Russian Federation) and agency agreements (Chapter 52 of the Civil Code of the Russian Federation), if the agent acts on his own behalf, provided that the commission agent (agent) does not accept responsibility for the execution of a transaction that he makes in the interests of the principal (principal) (see Article 993 of the Civil Code of the Russian Federation). Agency agreements do not belong to this group (Chapter 49 of the Civil Code of the Russian Federation), since the attorney acts not on his own behalf, but on behalf of the principal, i.e. The party to the transaction involving the sale of goods (works, services) is not the attorney, but the principal. Some types of purchase and sale agreement may also belong to this group, for example, consignment in the case when the consignee does not bear the risks associated with fulfilling the obligation to transfer the goods.

The second group of transactions, equated for tax control purposes to transactions between related parties, collectively meets two criteria: 1) these transactions must be related to foreign trade in goods; 2) goods for them must be objects of international exchange trade.

The concept of “foreign trade in goods” is used for the purposes of the commented chapter in the meaning defined by the legislation of the Russian Federation on foreign trade activities. According to paragraph 7 of Art. 2 of the Federal Law of December 8, 2003 N 164-FZ “On the Fundamentals of State Regulation of Foreign Trade Activities” foreign trade in goods is recognized as the import and (or) export of goods. Movement of goods between part of the territory of the Russian Federation and another part of the territory of the Russian Federation, if such parts are not interconnected by the land territory of the Russian Federation, through the customs territory of a foreign state, movement of goods to the territory of the Russian Federation from the territories of artificial islands, installations and structures over which Russian The Federation exercises jurisdiction in accordance with the legislation of the Russian Federation and international law, or the movement of goods between the territories of artificial islands, installations and structures over which the Russian Federation exercises jurisdiction in accordance with the legislation of the Russian Federation and international law does not constitute foreign trade in goods.

Goods that are objects of international exchange trading are directly indicated in paragraph 5 of the commented article. These include goods that are part of one or more of the following product groups: 1) oil and goods produced from oil; 2) ferrous metals; 3) non-ferrous metals; 4) mineral fertilizers; 5) precious metals and precious stones. The transactions referred to in this case are considered controlled if the amount of income from such transactions made with one person for the corresponding calendar year exceeds 60 million rubles. It should be noted that, according to the letter of the Ministry of Finance of Russia dated April 24, 2012 N 03-01-18/3-57, foreign trade transactions between related parties are recognized as controlled as a general rule, regardless of what goods are their object of sale.

Judicial practice under Article 105.14 of the Tax Code of the Russian Federation:

• Decision of the Supreme Court: Determination N VAS-18588/13, Judicial Collegium for Administrative Cases, supervision

  Article 105.16 of the Tax Code establishes the obligation of taxpayers to notify the tax authorities about the controlled transactions they have completed in a calendar year, specified in Article 105.14 of this Code. Information about controlled transactions is indicated in notifications about controlled transactions sent by the taxpayer to the tax authority at his location (place of residence) no later than May 20 of the year following the calendar year...

• Decision of the Supreme Court: Determination N 308-КГ16-10862, Judicial Collegium for Economic Disputes, cassation

  Taken into account by the taxpayer for tax purposes is the basis for determining the tax base based on market prices in the manner established by Section V.1 of the Tax Code, if such a transaction is recognized as controlled in accordance with Article 105.14 of the Tax Code. Moreover, due to the direct prohibition established in paragraph 3 of paragraph 1 of Article 105.17 of the Tax Code, control of the compliance of prices applied in controlled transactions cannot be the subject of on-site and desk audits...

• Decision of the Supreme Court: Determination N 308-КГ15-16651, Judicial Collegium for Economic Disputes, cassation

  The number of transactions between interdependent persons subject to control in the manner prescribed by Section V.1 of this Code are transactions that do not meet the criterion of controlled transactions, as well as transactions for which the amount of income does not exceed the amount criteria established by Article 105.14 of the Tax Code. Moreover, due to the direct prohibition established in paragraph 3 of paragraph 1 of Article 105.17 of the Tax Code, control of the compliance of prices applied in controlled transactions cannot be the subject of on-site and desk audits...

Taxpayers have mastered another form of reporting their own income called controlled transaction reporting. In order for a transaction to be called controlled, it is necessary to check it against the criteria for compliance with this category, as well as compare the procedure for generating these documents with the basic rules.

Related Persons

The Tax Code clearly defines the basic definitions regarding the concept of “controlled transaction”. both individuals and legal entities are interdependent, which affects taxation results. This definition is assigned only for those when the relationship between the two parties has a direct impact on the conditions and final results of the negotiations. This aspect is very important because the financial component of transactions depends on the results of agreements, part of which is always sent to the state treasury.

Recognition of persons as interdependent

In order for persons to be officially recognized as interdependent, the degree of real participation in capital and the possibility of its change are analyzed. This is usually influenced by the terms of the previously concluded agreement, as well as the ability of a certain person to otherwise influence decisions made by people important to the implementation of the transaction.

Related parties include:

1. Organizations if at least one company participating in the transaction takes part in the work of another company. This aspect is taken into account only if the share of total material investments in a third-party company is more than 25%. Both direct and indirect participation matters.
2. Organization and individual, if any of these participants in the transaction has a stake in another company. It must be at least 25% of the total assets.
3. Organizations, subject to the participation of any third party in their activities, with more than 25% of assets. It is important that the share of participation in both companies exceeds this mark.
4. Organizations, if their structure has executive bodies that were appointed or approved for their positions by the same person. Only sole executive bodies elected by one person or groups of them are relevant, provided that a specific person oversaw their formation in all firms participating in the transaction, at least 50% of the total composition.
5. The organization and its executive body that, for any legal reason, arranged the transaction.

The parties to any transaction can recognize themselves as interdependent if they consider that the taxation procedure adopted for such cases is most optimal for them. At the same time, they are required to prove that their relationship has a direct or indirect impact on the amount and outcome of the transaction.

Many firms conduct controlled transactions quite often. The criteria for identifying them vary, but they must be taken into account to ensure the validity of each contract. Where all the pretexts under which a controlled transaction can be carried out are recorded is Article 105 of the Tax Code of the Russian Federation.

The procedure for recognizing a transaction as controlled

Price control is not always ensured, even though the parties to the transaction are interdependent parties. However, most often it is between such persons that they are carried out. There are exceptions to the rules under which a transaction is definitely not considered controlled.

The highest amount limit has been assigned, beyond which it is impossible to say that this is a controlled transaction. This is only possible if all aspects of the transaction take place on the territory of the Russian Federation and the parties carry out all operations to acquire and extract benefits also in Russia, and the amount of income of all parties does not exceed 1 billion rubles. It is not beneficial for any of the participants to be officially exempt from paying income taxes or not to be a mineral extraction tax payer. In this case, the transaction may lose its validity, since the total income of all persons should not exceed 60 million rubles.

The procedure for recognizing transactions as controlled

The Ministry of Finance of the Russian Federation has approved a procedure that states what kind of legal relationship is called a “controlled transaction”. This concept is usually defined on the basis of a sum criterion, which is often the most important for the state as a whole, as well as for tax authorities. To calculate the total amount of income for one year, it is necessary to add up all the material funds received from each counterparty who contributed money for the specified period.

Sometimes, when calculating total income for a calendar year, not only single transactions are taken into account, but also income from a controlled transaction from agreements with different persons is summed up. The court, guided by Article 105 of the Tax Code of the Russian Federation, can confirm that a transaction is indeed controlled if a legal entity or individual manages to prove that a specific transaction is part of a certain group of agreements, although it is considered independent.

If persons are recognized as related, and one of the parties to the transaction is not considered taxable, then any agreements concluded between persons in which such a person takes part are recognized as controlled. For this purpose, the amount of income from the transaction will not be taken into account; it can be anything. This fact is confirmed by the information provided by the Ministry of Finance of the Russian Federation.

Article 105 of the Tax Code of the Russian Federation clearly states that the fixed amount regulating the possibility of recognizing a transaction as controlled applies only to those participants where all are tax residents of the Russian Federation. In legal practice, this aspect is determined by the presence of at least one person among the participants in the transaction who is not an official resident. If such a person is present, then the amount of income from the transaction may be unlimited.

Possibility to conduct a transaction between independent parties as a controlled one

Equating a transaction concluded between persons who are not recognized as interdependent with those conducted among interdependent people or organizations is possible if it is carried out with the direct participation of intermediaries. The remaining participants undertaking controlled transactions are interdependent persons.

The Tax Code of the Russian Federation provides that when conducting a transaction with the participation of intermediaries, persons can be recognized as interdependent if the aspects of the participation of intermediaries in them comply with the established rules.

1. They have a limited range of powers. They can only organize the processes of selling goods, without claiming other functions.
2. They do not use assets independently, do not have direct access to them, and do not bear any risks in the transaction.

You cannot perform any actions with non-related persons within the framework of the concepts where examples of controlled transactions are carried out. This is a very important rule, so the mediator must always adhere to it.

The Tax Code of the Russian Federation does not consider the amount of income that is allowed to recognize a transaction as controlled with the participation of an intermediary. In legal practice, there are not many cases of disputes on this issue, therefore, if ambiguous situations arise and government bodies refuse to recognize a transaction as controlled, it is necessary to go to court for further decision-making. It is impossible to predict the outcome of such a trial at this time.

The Ministry of Finance decided that there are no restrictions on the amount when concluding this transaction through an intermediary. If the transaction is concluded in accordance with all the rules, then the occurrence of quibbles from government authorities or refusal to assign the status that is regulated by examples of controlled transactions is very rare.

Some questions still arise and the court rarely, but regularly has to deal with perplexed questions from persons participating in the transaction, since with very large amounts of income it is not always possible to give the agreement the status of controlled.

This difficulty arises due to the release of a later official letter from the Ministry of Finance, which indicates that the department has a financial criterion, but applies it only to large-scale transactions. Depending on the nature of the transaction, as well as the direction of the enterprise’s activity, which affects the goods supplied and purchased, each party’s income limit is calculated.

Other transactions between unrelated parties recognized as controlled

1. goods that are included in the main list of the most influential on the world exchange market. These are oil and petroleum products, any metals, minerals that can be classified as mineral fertilizers, precious stones and metals.
2. Carrying out a transaction between persons, at least one of whom is a permanent resident or tax resident of a country that is included in the list compiled by the Ministry of Finance for providing benefits for taxation of enterprises.

A transaction is easily classified as controlled if one of its participants is a resident or resident of a territory belonging to offshore zones. Therefore, reporting must contain notifications on controlled transactions. And this is a must. It is necessary to separately take a sample notification of controlled transactions and fill it out correctly. This gives the right not to disclose or publish information related to financial transactions. This aspect also applies to representative offices of companies registered in Russia, which are located on the territory of such zones.

If a transaction becomes controlled due to the involvement of any of its participants in an offshore zone, then at least one organization must be registered in such a territory. For a transaction to be considered legal, the notification of controlled transactions must be filled out correctly. The sample form must not be changed or any items omitted.

What information is provided to the tax authorities?

To understand whether a transaction is classified as controlled, you need to check its concept and the circumstances under which it is carried out for compliance with Article 105 of the Tax Code of the Russian Federation. You should also review notifications for controlled transactions. If they can easily be classified as such, then when preparing tax reporting, special attention should be paid to the price of the contract.

Particularly important are the differences in cost compared to contracts with other counterparties, as well as the degree of compliance with the generally accepted value for a specific period, which are described in documents for specific controlled transactions. Filling out the paperwork must be done carefully, all details are taken into account.

Companies that carry out transactions with interdependent persons, that is, if the amount criterion is met, automatically fall under the concept that meets the definition of which transactions are controlled, are required to send special notifications about controlled transactions to the tax authority to which they are assigned by location. Whoever submits the documentation must always attach this paper to the public folder. The need to adhere to this rule is evidenced by the order of the Federal Tax Service of Russia. One must always remember the concept of a controlled transactions notice, that it is an overall report of the work carried out.

If Federal Tax Service employees want to check additional details of the transaction, then upon their request, organizations are obliged to provide all the necessary documentation. Article 105 of the Tax Code of the Russian Federation regulates this aspect and calls for the need to provide, upon request, a specific list of documents, which must contain basic information on the transaction.

Activities of a taxpayer involved in a specific transaction

A list of methods that were used to obtain and systematize information about one-time and total income is indicated. Additionally, you should provide explanations that justify the choice of a specific method, the data from which the information used was taken, indicate the exact amount of all income received for a specific transaction, and list an exhaustive list of expenses.

Rules for preparing reports

In order to immediately provide the most correct, systematized and authentic information, it is necessary to monitor prices in advance during a controlled transaction. It is advisable to prepare documentation at the time when any agreements are directly concluded, prices are set for products, services, or payment for a specific batch of goods occurs.

If all necessary documentation is completed on time, taxpayers will be able to immediately independently assess the correctness of the controlled transaction. Whoever submits the reports calculates the amount that the parties will be required to pay to the tax office. Conducting calculations in a timely manner will allow you to make adjustments to documents if any changes occur, rather than searching for information after a certain amount of time has passed. We must not forget to attach notices of controlled transactions to the list of documents. Whoever submits the main documentation is responsible for compliance with this rule.

Stages of information preparation

1. Analytical work on the costs of controlled transactions. Whoever submits the test must organize the filling out of papers regarding the tests and drawing up schedules.
2. Planning and calculation of the required volume of all documentation that is necessary to submit reports to the tax office. The required time for preparing all papers is determined in advance in order to submit the report on controlled transactions on time, and allocate time for their leisurely preparation and verification.
3. Description of all areas of activity of the person who is one of the parties to the transaction.
4. Checking and comparing the financial terms of the transaction, analyzing all aspects of the activities of the parties to the agreement.
5. Drawing up complete descriptions of all related parties who take part in the transaction. You also need to select a tested party if the transaction is officially recognized as controlled or meets the standards for assigning this status.
6. Methods and basic principles of pricing are selected in advance.
7. A full economic analysis is carried out, taking into account all aspects of the transaction, understanding its benefits and profitability for a specific participant.
8. A documentary base is created, which is checked by several specialists and compiled to compile a document called “report on controlled transactions.”

The documentation can only contain information that is confirmed by data held by the company. At the request of the Federal Tax Service, the organization must provide all official confirmation of the information provided. Employees of this service can send such a request to confirm the completeness of the information and verify the payment of taxes.

When assessing the level of detail, the degree of detail of information in the documentation, one must be guided by paragraph 6 of Article 105 of the Tax Code of the Russian Federation. The amount of information provided must be commensurate with the degree of importance of the transaction, its scale, and the amount of benefit for each participant.

Voluntary change in tax bases

Clause 6 of Article 105 of the Tax Code of the Russian Federation provides for the impossibility of using prices that do not correspond to market prices when concluding transactions, if they are much lower than them. If a company has been caught deliberately reducing the official amount of payments in order to reduce the tax deduction, then its owners have the opportunity to independently correct the value and make deductions to the state within the standard framework.

All adjustments are made with the obligatory provision of a tax return, which already indicates the income taxes intended to be paid for a specific period. If the company is not considered a tax payer, then a declaration is submitted, which must be paid within the established deadlines for the submission of all such documents.

Until all changes are included in the declaration, it should be submitted to the tax authorities along with an explanatory note detailing the entire amount that a particular person is required to add to the initial calculations.

The explanatory note must contain information about controlled transactions in relation to which adjustments were made. The new tax amount, serial number of the agreement, and the date of its conclusion are indicated. You should separately write the initial amount, and then accurately indicate the amount of material resources that will be added to the initial amount intended to pay off the tax payment.

Required items in documents

Complete information about all persons related to the controlled transaction is recorded. Indicate your personal tax identification number, as well as the full name of the organization or the name of the individual entrepreneur. It is allowed to add any other information that will help, in the taxpayer’s opinion, to quickly resolve the payment situation and facilitate the work of tax inspectors.

To make any changes to the VAT tax base, you must present all returns that were paid for the past period. When adjusting any data, it is necessary to enter significant information into the sales book. The basis for creating a record is a document that indicates the exact amount of the adjustment. The information provided must exactly match the amount of tax collected on the sale of goods.

When conducting a controlled transaction, it is necessary to correctly fill out all documents and set conditions that comply with the rules for conducting these agreements. Compliance with the procedure for maintaining documentation and compliance with the minimum acceptable prices will help organize the transaction most successfully.

For the purposes of this Code, controlled transactions are transactions between related parties (taking into account the specifics provided for in this article). For the purposes of this Code, the following transactions are considered transactions between related parties:

• 1) a set of transactions for the sale (resale) of goods (performance of work, provision of services) made with the participation (through mediation) of persons who are not interdependent (taking into account the features provided for in this subclause). The set of transactions specified in this subclause is equated to a transaction between interdependent persons, without taking into account the presence of third parties with the participation (through mediation) of which such set of transactions is carried out, provided that such third parties, not recognized as interdependent and participating in the specified set transactions:
• do not perform any additional functions in this set of transactions, with the exception of organizing the sale (resale) of goods (performance of work, provision of services) by one person to another person recognized as interdependent with this person;
• do not assume any risks and do not use any assets to organize the sale (resale) of goods (performance of work, provision of services) by one person to another person recognized as interdependent with this person;
• 2) transactions in the field of foreign trade in goods of world exchange trade;
• 3) transactions, one of the parties to which is a person whose place of registration, or place of residence, or place of tax residence is a state or territory included in the list of states and territories approved by the Ministry of Finance of the Russian Federation in accordance with subparagraph 1 of paragraph 3 of Article 284 of this Code. For the purposes of this subparagraph, if the activity of a Russian organization forms a permanent establishment in a state or territory included in the list specified in this subparagraph, and the analyzed transaction is related to this activity, then in part of this analyzed transaction such organization is considered as a person whose place of registration is a state or territory included in the specified list.

A transaction between related parties whose place of registration, or place of residence, or place of tax residence of all parties and beneficiaries is the Russian Federation is considered controlled (unless otherwise provided for in paragraphs 3, 4 and 6 of this article) if at least one of the following circumstances exists :

• 1) the parties to the transaction apply different rates for corporate income tax (except for the rates provided for in paragraphs 2 - 4 of Article 284 of this Code) to the profit from the activity within which the specified transaction was concluded;
• 2) one of the parties to the transaction is a taxpayer of the mineral extraction tax, calculated at a tax rate established as a percentage, and the subject of the transaction is the extracted mineral resource, which is recognized for the specified party to the transaction as an object of taxation by the mineral extraction tax, the extraction of which is taxed according to tax rate set as a percentage;
• 3) at least one of the parties to the transaction is a taxpayer applying one of the following special tax regimes: a taxation system for agricultural producers (single agricultural tax) or a taxation system in the form of a single tax on imputed income for certain types of activities (if the corresponding transaction is concluded within the framework of such activity), while among other persons who are parties to the specified transaction, there is a person who does not apply the specified special tax regimes;
• 4) one of the parties to the transaction is exempt from the obligations of a taxpayer of corporate income tax;
• 5) has become invalid. - Federal Law of August 3, 2018 N 302-FZ;
• 6) the transaction simultaneously satisfies the following conditions:
• one of the parties to the transaction is a taxpayer specified in paragraph 1 of Article 275.2 of this Code, and takes into account income (expenses) from such a transaction when determining the tax base for corporate income tax in accordance with Article 275.2 of this Code;
• any other party to the transaction is not a taxpayer specified in paragraph 1 of Article 275.2 of this Code, or is a taxpayer specified in paragraph 1 of Article 275.2 of this Code, but does not take into account income (expenses) on such a transaction when determining the tax base for corporate income tax in in accordance with Article 275.2 of this Code;
• 7) has become invalid. - Federal Law of August 3, 2018 N 302-FZ;
• 8) at least one of the parties to the transaction is a corporate research center specified in the Federal Law "On the Skolkovo Innovation Center" (hereinafter in this Code - a corporate research center), or a participant in the project in accordance with Federal Law No. 216 of July 29, 2017 -FZ “On innovative scientific and technological centers and on amendments to certain legislative acts of the Russian Federation”, applying exemption from the duties of a taxpayer of value added tax in accordance with Article 145.1 of part two of this Code;
• 9) at least one of the parties to the transaction applies during the tax period an investment tax deduction for corporate income tax provided for in Article 286.1 of this Code;
• 10) at least one of the parties to the transaction is a taxpayer of the tax on additional income from the production of hydrocarbon raw materials and income (expenses) from such a transaction are taken into account when determining the tax base for the tax on additional income from the production of hydrocarbon raw materials.

Transactions provided for in paragraph 1 of this article are considered controlled if the amount of income from transactions between these persons for the corresponding calendar year exceeds 60 million rubles.

Transactions provided for in paragraph 2 of this article are considered controlled if the amount of income from transactions between these persons for the corresponding calendar year exceeds 1 billion rubles.

Regardless of whether the transactions satisfy the conditions provided for in paragraphs 1 - 3 of this article, the following transactions are not considered controlled:

• 1) the parties to which are participants of the same consolidated group of taxpayers formed in accordance with this Code (except for transactions the subject of which is an extracted mineral resource recognized as an object of taxation by the mineral extraction tax, the extraction of which is taxed at the tax rate, established as a percentage, as well as transactions, income (expenses) for which are taken into account when determining the tax base for the tax on additional income from the production of hydrocarbons);
• 2) the parties to which are persons who simultaneously satisfy the following requirements:
• these persons are registered in one subject of the Russian Federation;
• these persons do not have separate divisions on the territories of other constituent entities of the Russian Federation, as well as outside the Russian Federation;
• these persons do not pay corporate income tax to the budgets of other constituent entities of the Russian Federation;
• these persons do not have losses (including losses from previous periods carried forward to future tax periods) accepted when calculating corporate income tax;
• there are no circumstances for recognizing transactions carried out by such persons as controlled in accordance with subparagraphs 2 - 7 of paragraph 2 of this article;
• 3) transactions between taxpayers specified in paragraph 1 of Article 275.2 of this Code, carried out by them when carrying out activities related to the production of hydrocarbon raw materials in a new offshore hydrocarbon deposit, in relation to the same field (subsoil plot - before the allocation of the corresponding subsoil plot the first new offshore hydrocarbon field);
• 4) interbank loans (deposits) with a maturity of up to seven calendar days (inclusive);
• 5) in the field of military-technical cooperation of the Russian Federation with foreign states, carried out in accordance with Federal Law of July 19, 1998 N 114-FZ “On military-technical cooperation of the Russian Federation with foreign states”;
• 6) transactions for the provision of sureties (guarantees) if all parties to such a transaction are Russian organizations that are not banks;
• 7) transactions for the provision of interest-free loans between related parties, the place of registration or place of residence of all parties and beneficiaries for which is the Russian Federation.

Transactions provided for in subparagraph 2 of paragraph 1 of this article are considered controlled if the subject of such transactions are goods included in one or more of the following product groups:

• 1) oil and goods produced from oil;
• 2) ferrous metals;
• 3) non-ferrous metals;
• 4) mineral fertilizers;
• 5) precious metals and precious stones.

The codes of the goods listed in paragraph 5 of this article, in accordance with the Commodity Nomenclature of Foreign Economic Activity, are determined by the federal executive body exercising the functions of developing state policy and legal regulation in the field of foreign trade.

Transactions provided for in subparagraphs 2 and 3 of paragraph 1 of this article are considered controlled if the amount of income from such transactions made with one person for the corresponding calendar year exceeds 60 million rubles.

For the purposes of this Code, the concept of “foreign trade in goods” is used in the meaning determined by the legislation of the Russian Federation on foreign trade activities.

For the purposes of this article, the amount of income from transactions for a calendar year is determined by adding the amounts of income received from such transactions with one person (related parties) for the calendar year, taking into account the procedure for recognizing income established by Chapter 25 of this Code. When determining the amount of income from transactions, the federal executive body authorized for control and supervision in the field of taxes and fees, for the purposes of this article, has the right to check the compliance of the amounts of income received from transactions with the market level, taking into account the provisions of Chapter 14.2 and Chapter 14.3 of this Code.

At the request of the federal executive body authorized for control and supervision in the field of taxes and duties, the court may recognize a transaction as controlled if there are sufficient grounds to believe that the specified transaction is part of a group of similar transactions made in order to create conditions under which such a transaction did not meet would meet the criteria of a controlled transaction established by this article.

Transactions are recognized as controlled transactions taking into account the provisions of paragraph 13 of Article 105.3 of this Code.

2017 is the fifth year that entrepreneurs have proven that prices were market prices in transactions concluded with their subsidiaries.

Controlled transactions are transactions that are carried out between persons dependent on each other, for example, participants in the same holding company in the presence of any criterion set out in Article 105.14 of the Tax Code of the Russian Federation. The law provides for keeping records and control of such transactions and submitting information to the tax authority at the place of registration. Failure to comply with legal requirements will result in penalties. These transactions are controlled in order to prevent understatement of prices, tax base, and, accordingly, taxes.

Criteria for controlled transactions

The types of transactions and the amount of income from transactions made with one person (related parties) for the corresponding calendar year, in excess of which these transactions are recognized as controlled, are listed in Article 105.14 of the Tax Code of the Russian Federation. The amount of income from transactions for a calendar year is determined by adding the amounts of income received from such transactions with one person (related parties) for the calendar year.

So, transactions between Russian related parties are considered controlled if at least one of the following circumstances exists:

1. The amount of transactions between persons for a calendar year is more than 1 billion rubles;
2. One of the parties to the transaction is a mineral extraction tax payer and the subject of the transaction is the extracted mineral resource;
3. At least one of the parties to the transaction applies the unified agricultural tax or UTII, but the other does not;
4. At least one of the parties to the transaction applies a 0% rate of income tax, and the other is not exempt from paying this tax in accordance with clause 5.1 of Article 284 of the Tax Code of the Russian Federation;
5. At least one of the parties to the transaction is a participant in preferential taxation for income tax, but the other is not
6. If one of the parties to the transaction is a taxpayer specified in paragraph 1 of Article 275.2 of the Code and takes into account income (expenses) from such a transaction when determining the tax base for corporate income tax in accordance with Article 275.2 of the Code, and the second party is not such a taxpayer
   or is, but does not take into account income (expenses) on such a transaction in accordance with the specified article.
7. at least one of the parties to the transaction is a participant in a regional investment project that applies a reduced income tax rate to the budget of the subject, or a 0% rate to the federal budget.

The most attractive to tax authorities are transactions that have many intermediaries, as well as transactions with non-residents of the Russian Federation. Both Russian and foreign companies can come under close attention of the tax service.

The following transactions are considered transactions between related parties:

1. A set of transactions for the sale of goods (works, services) between a significant number of intermediaries who are not interdependent, but do not perform any additional functions, do not bear risks in their activities, do not use any assets, in a word, formal intermediaries.
2. Transactions in the field of foreign trade in goods of global exchange trade;
3. Transactions, one of the parties to which is a person who is a resident of the state, included in the list of states and territories approved by the Ministry of Finance of the Russian Federation in accordance with paragraph 1 of paragraph 3 of Article 284 of the Tax Code of the Russian Federation.

Transactions between related parties and equivalent transactions that are not recognized as controlled

All exceptions for uncontrolled transactions between related parties are specified in clause 4 of Article 105.14 of the Tax Code of the Russian Federation.

These are the cases:

1. If the transaction is carried out between participants of the same consolidated group of taxpayers, with the exception of transactions on mineral extraction tax;
2. The parties to which are persons who simultaneously satisfy the following requirements:
   — these persons are registered in one subject of the Russian Federation;
   - these persons do not have an OP in the territory of other constituent entities of the Russian Federation, and outside of Russia;
   — these persons do not pay income tax to the budgets of other constituent entities of the Russian Federation;
   — these persons do not have any losses accepted when calculating income tax;
   — there are no circumstances for recognizing the transactions carried out by these persons as controlled in accordance with paragraphs. 2-7 clause 2 of Article 105.14 of the Tax Code of the Russian Federation;
3. Transactions between taxpayers specified in paragraph 1 of Article 275.2 of the Code, carried out by them when carrying out activities related to the production of hydrocarbons at a new offshore hydrocarbon deposit, in relation to the same deposit;
4. Interbank loans (deposits) with a period of up to seven calendar days (inclusive);
5. In the field of military-technical cooperation of the Russian Federation with foreign states, carried out in accordance with Federal Law of July 19, 1998 N 114-FZ “On military-technical cooperation of the Russian Federation with foreign states.”

Domestic transactions with related parties

These transactions between related parties are described in clause 2 of Article 105.14 of the Tax Code of the Russian Federation. They are provided with threshold values ​​for the amounts of income from transactions with one person (interdependent persons), if exceeded for the corresponding calendar year, transactions between these persons are considered controlled.

More than 1 billion rubles.
The amount of income from transactions with one person (related parties) for a calendar year.

More than 100 million rubles.
The amount of income from transactions, one of the parties to which is a person applying one of the special tax regimes in the form of Unified Agricultural Tax or UTII.

More than 60 million rubles.
The amount of income from transactions between related parties listed in clauses 2,4,5, clause 2 of Art. 105.14 of the Tax Code of the Russian Federation (with payers of mineral extraction tax; with organizations exempt from paying income tax or applying a zero rate for this tax; with residents of special economic zones

Foreign economic transactions

Foreign economic transactions between related parties are considered controlled, regardless of the amount of income from such transactions for the corresponding calendar year. Foreign economic transactions are transactions where one of the parties is a foreign organization.

Foreign economic transactions specified in paragraphs 2 and 3 of paragraph 1 of Article 105.14 of the Tax Code of the Russian Federation also fall under tax control. These are transactions with a specific range of goods: oil and its products, ferrous and non-ferrous metals, mineral fertilizers, precious metals and precious stones. As well as transactions with offshore companies.

Notice of controlled transactions

If a taxpayer falls under the criteria for conducting controlled transactions, then he needs to inform the tax authority about this. To do this, a Notification of controlled transactions completed, for example, in 2016, is submitted by May 20, 2017. The notification can be submitted either on paper or electronically to the tax authority at the place of registration. The Notification form was approved by order of the Federal Tax Service of Russia dated July 27, 2012 No. ММВ-7-13/524@.

If the tax authority establishes the fact of false information in the Notification, then administrative liability will inevitably be imposed.
For failure to submit a Notification or for false information in it, the taxpayer is held liable for taxation in accordance with Article 129.4 of the Tax Code of the Russian Federation in the amount of 5,000 rubles.

The notice consists of a title page and 4 sections:

1. section 1A;
2. section 1B;
3. section 2;
4. section 3.

If the notification is submitted in relation to transactions with legal entities, then Section 2 is completed in relation to transactions with individuals, individual entrepreneurs, notaries, etc. – section 3.
Order of the Federal Tax Service of the Russian Federation dated July 27, 2012 No. ММВ-7-13/524@ approved the procedure for filling out the Notification of Controlled Transactions form. To complete the Notification efficiently, you can use the services of specialists in this field.

Changes in controlled transactions in 2017

From January 1, 2017, the list of transactions that are not considered controlled has been increased. This change was introduced by Federal Law No. 401-FZ dated November 30, 2016.

Now the following transactions will not be recognized as controlled:

1. To provide sureties (guarantees) if all parties to such a transaction are Russian organizations that are not banks;
2. For the provision of interest-free loans between related parties, the place of registration or place of residence of all parties and beneficiaries for which is the Russian Federation.

This means that participants in these transactions, from January 1, 2017, do not have to notify the tax authorities about their completion, and the Federal Tax Service of Russia will not be able to control the prices used in these transactions for tax purposes.

Controlled transaction codes

Section 1A of the Notification contains information on each controlled transaction during the reporting period or on a set of similar transactions, in addition, information on the financial conditions of these transactions is indicated. You need to fill out as many sheets of Section 1A as there were transactions (or a set of similar transactions). When filling out the Notification, various codes are used, which are given in the order of the Federal Tax Service dated July 27, 2012 No. ММВ-7-13/524 @.

Thus, in paragraphs 121 – 124 and in paragraphs 131 – 135 in each field of the Notification the corresponding figure is indicated according to the code of the basis for classifying a transaction as controlled according to Article 10514 of the Tax Code of the Russian Federation in accordance with Appendix No. 1

Code of the basis for classifying a transaction as controlled

How and when is a tax audit of controlled transactions carried out?

In accordance with Art. 105.17 of the Tax Code of the Russian Federation, the correct application of prices for tax purposes is monitored by employees of the Federal Tax Service during the so-called special inspections.

Special checks may be carried out on the basis of:

1. notifications of controlled transactions sent by organizations and individuals to tax inspectorates;
2. notifications from tax inspectorates conducting on-site and desk audits, tax monitoring;
3. when identifying controlled transactions during repeated on-site tax audits conducted by the Federal Tax Service of the Russian Federation.

If an organization carries out controlled transactions, then it may undergo a special inspection by representatives of the Federal Tax Service of the Russian Federation.

If, as a result of the audit, facts of deviation of the price used in the transaction from the market price were revealed, which led to an underestimation of the tax amount, within two months from the date of drawing up the certificate of the audit, the officials who conducted the audit must draw up an Inspection Report, sign it by the taxpayer and hand over. Further, the procedure for implementing audit materials is the same as when conducting on-site tax audits. Taxpayer's objection, consideration of materials, decision-making based on the results of the audit.

Controlled transactions are those that occur between persons considered to be related. According to them, the tax authorities have the right to check the compliance of the market value, and, in addition, monitor the full volume of calculations along with the payment of a number of taxes. Below we will look at Art. No. 105.14 from the Tax Code of the Russian Federation with comments.

Types of transactions between participants that are interdependent

According to the purposes of the Tax Code, such transactions are those that occur between participants who are interdependent:

• A controlled transaction is a set of transactions for the resale of goods, or the fulfillment of orders and the provision of services, which are carried out with the participation of persons who are not considered interdependent. Such a set is equated to transactions between participants who are interdependent, although the presence of third parties who do not perform any additional functions in this set is not taken into account. The exception is their organization of resale of goods, provision of services, and so on. Third parties do not assume risks and do not use assets to organize the sale of goods.
• Major transactions in the field of foreign economics and trade.
• Transactions provided that one of the parties is a participant whose place of residence is a state or territory included in the list approved by the Ministry of Finance in accordance with Article No. 284 of the Tax Code. In the event that the activities of a Russian institution form a permanent representative office in a country included in the list specified in Article No. 284, then this organization is considered as a person whose place of residence is the territory included in this list.

Circumstances under which transactions are considered controlled

Controlled transactions are transactions between participants whose place of registration and residence is Russia. They are such if at least one of the following circumstances exists:

• The maximum amount of transactions between participants in a calendar year exceeds one billion rubles.
• One of the parties acts as a taxpayer for the extraction of mineral resources. In this case, the tax is calculated at a rate set as a percentage, and the actual subject of the transaction is the extracted mineral. This mineral is recognized as an object of taxation for the specified person.
• The transaction involves related parties, and at least one of the parties is a taxpayer who applies one of the special regimes. One of them is the system of taxation of agricultural producers. Another regime involves a system in the form of a single tax on imputed profits for certain types of activities. With all this, among other persons who are parties to the transaction, there are those who do not apply the above tax regimes.

• One of the parties is not required to pay tax on the profits of the enterprise. However, the other party is not exempt from such responsibilities. What else do controlled transactions under the Tax Code of the Russian Federation imply?
• At least one of the parties is a resident of a special economic zone or is a participant in it, and the state regime in this territory provides special benefits for corporate income taxes.
• A major transaction must satisfy several conditions in parallel. First, one of the parties must act as a taxpayer and account for profits and losses on transactions. Any other party may not be considered a taxpayer. Or it may be a taxpayer, but at the same time has the right not to take into account profits and losses on transactions when determining the tax base.
• At least one of the parties is a member of the investment project, which applies the corporate income tax rate, which is subject to credit to the federal budget.
• At least one party to the transaction is a research corporate entity that enjoys an exemption from VAT obligations.

Transactions that are not considered controlled

The following transaction options are not considered controlled:

• The parties to the transaction are persons from the same combined group of taxpayers, which was formed in accordance with the Tax Code. The exception is those operations whose subject is the extracted mineral resource, which is considered an object of taxation. Moreover, within the framework of production, taxation should occur at a special rate, which is set as a percentage.
• The parties to the transaction are participants who simultaneously satisfy several requirements. One of these requirements is registration in one subject of the state. In addition, interdependent entities should not have separate divisions on the territory of other constituent entities of the country, as well as outside its borders. Another requirement is that participants should not pay corporate income tax to the budgets of other regions of the country. Among other things, the participants in the transaction should not have losses accepted when calculating corporate income taxes. Also, another requirement is that there must be no circumstances for the transactions to be considered controlled.
• Transactions between taxpayers that occur during the implementation of any activity related to the production of hydrocarbons in one of the offshore fields.

• Interbank loans with a total period of up to seven days inclusive.
• In the field of military and technical cooperation between Russia and foreign countries.
• Transactions to provide guarantees in situations where all parties are Russian institutions that are not banks.
• Transactions related to the provision of interest-free loans that occur between participants who are interdependent and whose place of registration or residence is Russia.

Goods of controlled transactions

A controlled transaction is a transaction that is considered such if its subject is goods that are part of one or more of the following categories:

• Gems.
• Oil and the like. In this situation, we mean goods made from petroleum products.
• Black metals.
• Non-ferrous metals.
• Precious metals.
• Mineral fertilizers.

The codes of goods that were listed above, according to the nomenclature of economic activity, are established by the authority that performs the functions of developing public policy, and, in addition, of normative and legal regulation in the field of foreign economics.

Transactions are also considered controlled in situations where the amount of profit on them is more than sixty million rubles. At the same time, it takes into account income from transactions that were carried out by one person for a full calendar year.

The amount of profit for a set of transactions is determined by adding up the income received for a full calendar year. As part of determining the amount of profit on transactions, the executive body, which is authorized to control in the field of taxes, has the right to verify the compliance of the income received with the market volume.

Based on a statement from the government authority that is authorized to exercise control over taxes, the court may recognize an operation as controlled if there are sufficient grounds to believe that it is part of a group of similar operations.

Main criteria

So, the Tax Code presupposes, in particular, the following criteria for transactions that are considered controlled:

• Transactions occur between participants who are interdependent, as well as acting as residents of the country.
• Foreign trade transactions with a resident from an offshore zone in the amount of more than sixty million rubles.
• Foreign trade transactions between participants that are interdependent. In this case, the amount of profit does not matter.

The criteria for controlled transactions must be complied with. At the same time, the legislation lists transactions that are not recognized as controlled, regardless of whether they meet the above criteria or not.

Such transactions especially include transactions between institutions that simultaneously meet the following requirements:

• Institutions are registered in one subject of the country. At the same time, they do not have separate divisions on the territories of other subjects and abroad as well.
• Enterprises do not pay taxes on income to the budgets of other state entities.
• There are no losses that are taken into account when calculating income taxes. In this case, losses from previous periods are taken into account and transferred to future stages.

Options for determining profit

According to the Tax Code, as part of monitoring transactions that occur between participants, the following methods for determining profit are used:

• Methodology for comparing market prices.
• Cost of subsequent sales.
• Costly way.
• Option of comparable profitability.
• Techniques in profit distribution.

In this case, it is possible to use a combination of two or more methods. It is worth noting that the method of comparing market prices is considered a priority in most situations.

Examples of controlled transactions are presented below.

Transactions and fines

According to the law, non-payment by taxpayers of amounts within the framework of the use of commercial terms in controlled transactions that are not comparable with the requirements between persons involves the collection of the following fines:

• In the total amount of twenty percent of the unpaid tax. This penalty applies to periods ranging from 2014 to 2016.
• In the amount of forty percent of the unpaid amount, but not less than thirty thousand rubles. This penalty applies to tax years starting from 2017.

Independent adjustment of tax liabilities as part of controlled transactions

Taxpayers have the right to independently adjust their tax obligations in connection with the use of prices in transactions between participants that do not correspond to market levels, in order to avoid liability for tax offenses.

Adjustment of the bases, as well as the corresponding amounts, must be made at the end of the calendar year, which includes the tax periods whose amounts need to be adjusted:

• For individuals, this occurs simultaneously with the filing of the declaration no later than April 30 of the year following the completed tax period.
• For organizations, the adjustment must occur simultaneously with the filing of an income tax return no later than March 28 of the year following the completed period.

According to Art. 105. 14 of the Tax Code of the Russian Federation, the period for value added tax is a quarter. And for mineral extraction taxes, this period is one month. Tax adjustments are reflected in the updated declarations for each period in which price deviations were recorded. These declarations are submitted simultaneously with documents on corporate income taxes.

Amounts of arrears identified by the taxpayer as a result of independently made adjustments must be repaid no later than the moment of payment of corporate income tax for the corresponding period. That is, this must be done no later than March 28 of the year following the completed tax period. It is important to take into account that for the period from the moment arrears arise until the expiration of the established repayment period, no penalty is accrued on their amount.

Controlled transactions: period, obligation and address of notification

Who files a notice of controlled transactions?

Information about transactions completed by the taxpayer in the current calendar year is indicated in the notification. Persons send this notification to the tax authority at their location no later than May 20 of the year following the period in which the controlled transaction was carried out. Persons classified as large taxpayers submit these notifications to the tax authorities at their place of registration.

If a taxpayer fails to submit a notification to the relevant authority within the prescribed period about controlled transactions that were carried out by him in a calendar year, he will face a fine of five thousand rubles. If a person provides false information, he will also face a fine of five thousand rubles.

Depending on the choice of taxpayers, notification of completed transactions can be provided either according to the established scheme - on paper, or in an approved format in electronic form.

The form of notification of completed controlled transactions, along with the procedure for filling it out and submitting it electronically, is approved by the federal executive body, which is authorized to control and, in addition, supervise in the field of taxes in agreement with the Ministry of Finance. The notification form must be approved by the Federal Tax Service.

If incomplete information is discovered along with inaccuracies or errors in filling out the submitted document on controlled transactions, the taxpayer has the right to send an updated version of the notification.

What information must a taxpayer provide in the notice?

So, information about controlled transactions carried out should contain the following information:

• Calendar year. This section indicates the year for which information on controlled transactions carried out by taxpayers is provided.
• The subject of the transactions carried out and their brief description.
• Information about all participants in transactions. This section requires you to indicate the full name of the institution, as well as the TIN if the company is registered with the tax authority in Russia. In addition, if we are talking about an individual entrepreneur, then it is required to provide his last name, first name and patronymic, as well as TIN. Civilians provide exactly the same information.

• One section of the notice requires you to indicate the amount of profit received. In addition, you will need to report the amount of losses incurred as a result of controlled transactions.

Thus, the direct essence of controlled transactions is applied in domestic legislation regarding control of the transfer value of transactions between participants who are interdependent.