The State Tax Service of Ukraine, with EU4PFM support, developed a unique IT solution, Big Data Transfer Pricing, to strengthen tax control over transfer pricing (TP)

To counter tax evasion by multinational corporations and the shifting of profits to tax havens—leading to billions of hryvnias in lost tax revenues for Ukraine—the State Tax Service has introduced this innovative, cutting-edge IT solution.

It’s worth noting that similar software products are used by only a few countries worldwide.

With this new development, the State Tax Service can more efficiently analyse large volumes of data from customs declarations, tax and other reports, as well as information from international analytical sources. Using over a hundred automated risk-based algorithms, the IT system helps quickly identify TP-related risks.Transparency and the use of standardized approaches and digital technologies in tax control ensure fairness and equal conditions for businesses.

The introduction of this IT system enables:

• the enhancement of risk-based approaches;

• the unification, standardization, and automation of TP tax control processes;

• the reduction of TP tax violations and legal disputes;

• the minimization of human influence.

EU4PFM continues to support the State Tax Service in implementing modern innovative practices and IT technologies.