Mandatory notification of controlled transactions

EMG would like to remind that before May 20, 2019, all companies that had controlled transactions in 2018 must submit notices of controlled transactions to the tax inspectorate.

Failure to submit or late submission of a notice, as well as submission of a notification with inaccurate information, entail a fine of 5,000 rubles for a legal entity. In addition, if the tax base is underestimated because of the application of non-market prices, the organization faces a fine of 40% of the unpaid tax, but no less than 30,000 rubles.

Moreover, as the deputy head of the transfer-pricing department of the Federal Tax Service of Russia, Elisey Balta said, the lack of notification of controlled transactions could be a reason for a tax audit.

Experts of Emerging Markets Group will be happy to offer you their assistance in collection of data on controlled transactions for 2018, preparation of notification, and submission of notice to the tax inspection.