METHODOLOGICAL METHODS AND TECHNIQUES FOR CONDUCT OF FORENSIC ECONOMIC EXAMINATION OF THE COMPLIANCE OF CONTROLLED OPERATIONS WITH THE PRINCIPLE OF THE «EXTENDED HAND»

Abstract

Abstract. The article is the systematization of methodical methods and techniques for conducting an expert
study of compliance of controlled operations with the principle of «outstretched hand» based on the generalized
results of expert practice, which will contribute to the improvement of the transfer pricing examination methodology.
Methodology. The reliability of the obtained results is ensured by the use of a wide range of methodological approaches
to conducting scientific research, in particular: formal-logical, systemic, modeling, praxeological, etc. The scientific
novelty – methodical methods and techniques are proposed that can be used when conducting an emergency
investigation of operations in the field of transfer pricing. Results. The article substantiates the importance of checks of
controlled operations for compliance with the «arm's length» principle aimed at preventing tax evasion. The concepts
of controlled operations and the principle of an outstretched hand, which are defined by scientists and relevant legal
acts, are given. The provisions of the Tax Code of Ukraine, which regulate the taxpayer's course of action, if the
conditions in one or more controlled transactions do not comply with the principle of «arm's length» are defined.
The methods used to establish the compliance of the conditions of the controlled operation with the "arm's length"
principle (comparative uncontrolled price; resale price; «cost plus»; net profit; profit distribution) are indicated. It
is emphasized that the transfer pricing method used by the taxpayer must meet certain criteria. The essence and
requirements for the content of reporting on controlled transactions are revealed, and it is also emphasized that the
specified data must be correlated with accounting data and primary documents, financial and tax reporting. The
object and subject of expert research in the field of transfer pricing, as well as the methods by which the expertise
is carried out, are defined. Normative and legal acts, which are used during the examination of transfer pricing for
individual product groups, are indicated. Examples of application of expert research methods are given. In particular,
the practical application by an expert economist of the method of calculating the price range and the median of such
range is demonstrated. Based on the results of the analysis, appropriate conclusions were drawn. Statistical data of the
State Tax Service of Ukraine on the number and volume of independent adjustment by the taxpayer of the prices of
controlled transactions are provided.