Ministry of Finance of the Russian Federation
Ministry of Finance of the Russian Federation
18.10.2011

Statements of State Secretary - Deputy Finance Minister of the Russian Federation S.Shatalov

 

Transfer pricing law should apply to Gazprom in full - Shatalov

MOSCOW. Oct 18 (Interfax) - The law on transfer pricing ought to apply to Gazprom in full, Deputy Finance Minister Sergei Shatalov told reporters.

"I'm hoping we'll do without any exceptions for Gazprom. This means the law on transfer pricing must apply to them in full. We aren't prepared for any exceptions," he said.

An agreement on pricing could be signed between the tax authorities and Gazprom at the beginning of 2012, Shatalov said.

At a roundtable organized by the Association of European Businesses, Shatalov said that the tax authorities are currently working on an agreement with one particular company, which could very possibly be reached at the beginning of 2012. He later specified to journalists that he was talking about Gazprom.

As regards the possibility of signing such agreements, Shatalov said that "the resource that the tax authorities have is not that great, which is why we are only talking about the largest taxpayers having the possibility of signing such agreements."

"This is most relevant for them, which is why I am talking about major deals, amounts, risks connected with heavy fines," he said. This section of the chapter on transfer pricing will develop as the tax authorities gain more experience.

In accordance with the law on transfer pricing, starting January 1, 2012, the largest taxpayers can submit applications to the tax authorities to sign an agreement on pricing. The subjects of such an agreement will be types and lists of the controlled transactions relevant to the agreement, the procedure for determining prices and applying methodologies of price setting, and the procedure and deadline for providing documents confirming the conditions of fulfilling the agreement.

 

Transfer pricing law should apply to Gazprom in full - Shatalov

MOSCOW. Oct 18 (Interfax) - The law on transfer pricing ought to apply to Gazprom in full, Deputy Finance Minister Sergei Shatalov told reporters.

"I'm hoping we'll do without any exceptions for Gazprom. This means the law on transfer pricing must apply to them in full. We aren't prepared for any exceptions," he said.

 

Deputy finance min: No exception for Gazprom on transfer pricing

MOSCOW, Oct 18 (PRIME) -- The law on transfer pricing, which is to come into effect on January 1, 2012, must be applied to Russian natural gas company Gazprom as well, Deputy Finance Minister Sergei Shatalov told reporters Tuesday.

“The law on transfer pricing must be applied to them (Gazprom) in full. We are not ready to make exceptions (for Gazprom),” Shatalov said.

Transfer pricing refers to the sale of goods and services by affiliated companies at non-market prices and can be used to avoid paying taxes by redistributing profits to a company that pays lower taxes. Under the law, a special department of the Federal Antimonopoly Service (FAS) would control such deals.

Earlier, Russian business daily Vedomosti reported that Gazprom’s CEO Alexei Miller submitted a letter to Russian Prime Minister Vladimir Putin asking to exempt the company’s operations from the transfer pricing law, and Putin instructed the ministry to consider the issue. Shatalov confirmed this information, and said that Gazprom is currently working with the service on the conclusion of an agreement in order to avoid amending the law in connection with the issue.

Separately, Shatalov said that the ministry has also prepared around 60 amendments to the law, most of which are technical. However, these amendments are unlikely to be approved by the State Duma, the Russian parliament’s lower house, by the end of the year.

 

Russian govt to ease criteria for consolidated groups of taxpayers

MOSCOW, Oct 18 (PRIME) -- The Russian government is expected to ease the criteria taxpayers must meet to be attributed to a consolidated group of taxpayers, Deputy Finance Minister Sergei Shatalov told reporters Tuesday.

Specifically, the value of fixed assets could be decreased to 300 billion rubles from the 1 trillion rubles, he said. The decrease is envisaged by a bill, which was recently approved in the first reading by the State Duma, the lower house of the Russian parliament.

In addition, the total assets of a taxpayer that could be attributed to a consolidated group should be a minimum of 1 trillion rubles, while total tax payments should be a minimum of 15 billion rubles per year with annual sales revenue of no less than 100 billion rubles.

The draft bill has become more convenient and we are ready to ease the criteria, Shatalov said, adding that the government could also decrease the required level of total tax payments to 10 billion rubles per year.

The final reading of the draft bill is expected to be approved by the end of 2011, while the bill is expected to come into effect in early 2012, Shatalov said.

 

Transfer pricing law should apply to Gazprom, minister claims

 18 October 2011

RBC.The transfer pricing law should be fully applicable to Russia's gas major Gazprom, Deputy Finance Minister Sergey Shatalov told reporters. The law, due to take effect on January 1, 2012, empowers tax authorities to check that deals between affiliated companies are struck at market prices. Earlier, Gazprom had asked Prime Minister Vladimir Putin for a transfer pricing waiver, and Putin instructed the government to consider the issue. "Hopefully Gazprom will not be entitled to a waiver, which means that the company should comply with the transfer pricing law. We are not ready for any exceptions," Shatalov noted, adding that tax authorities are currently working with Gazprom to hammer out a pricing agreement.

Bottle of cheap vodka to cost 180 rubles in 2014 – deputy finance minister.

MOSCOW, October 18 (Itar-Tass) —— A bottle of cheap vodka will cost 180 rubles, while a pack of cheap cigarettes will be sold for 40 rubles in 2014, Deputy Finance Minister Sergei Shatalov said at the Tuesday meeting of the State Duma Budget Committee, which discussed a bill on the increase of excise rates in 2012-2014.

The shift of the tax burden on ethyl alcohol will not solve the problem of the shadow alcohol market, Shatalov said. He said the solutions could be found in stricter control over the production and distribution of alcoholic beverages and tighter punishment of violations.