Putin promises crackdown on transfer pricing
August 07, 2008
Russian Prime Minister Vladimir Putin has vowed to tighten transfer pricing regulations after he publicly accused one of the country’s leading steelmakers Mechel, of tax evasion.
At a meeting of the internal cabinet on July 28, Putin indicated that a metal company was selling raw material on the foreign market cheaper than the domestic price. It is widely acknowledged that Putin was referring to Mechel, having criticised its tax practices in a meeting on July 24. The company’s behaviour would reduce taxable income and be classified as tax evasion.
Sorry. You must be a subscriber to view this article. Alternatively, why not take a free trial? To subscribe and access this article immediately simply click here or call +44(0)207 779 8380.