Empowering tax oversight: State Tax Service collaborates with EU4PFM to deploy novel transfer pricing analysis solution

A demonstration of a prototype of the novel system for handling large datasets in transfer pricing recently took place—an automated IT system designed to analyze transfer pricing risks.

In light of current economic developments, there’s a pressing need for novel approaches and technologies in processing and analyzing vast electronic information, especially for tax control in transfer pricing.

The primary objective behind the development of this System is to streamline tax control procedures, ensuring compliance with the arm’s length principle for controlled operations.

This innovation aims to achieve several key objectives:

Enhancing risk-based approaches
Improving the speed, accuracy, and efficiency of transfer pricing control outcoms
Reducing instances of tax violations and litigations
Minimizing the impact of human factor.

Considering Ukraine’s aspirations for EU integration, adhering to OECD transfer pricing guidelines for multinational companies and tax authorities is extremely important. This system plays a key role in effective tax control based on the principle of “outstretched hand” and compliance with these recommendations in practice.