The only state web portal1. Main tasks and functions of the International Taxation and Audit Department
1.1. Monitoring compliance with tax legislation on transfer pricing, controlled foreign companies, taxation of non-resident income, activities of non-residents, representative offices (permanent offices) of non-residents and other legislation, compliance monitoring with which is entrusted to the State Tax Service.
1.2. Analysis of income payments to non-residents with a source of origin from Ukraine for organizing documentary audits of taxpayers – legal entities.
1.3. Organizing documentary audits, including establishing compliance of controlled transactions with the arm’s length principle, compliance with rules on controlled foreign companies, taxation of non-resident income, audits of non-residents and representative offices (permanent offices) of non-residents.
1.4. Organizing interaction and information exchange with state bodies of other states, including automatic exchange, according to legislation of Ukraine, international treaties.
1.5. Organization and conduct of procedure for preliminary coordination of pricing in controlled transactions, coordination procedures with competent authorities of the foreign states regarding consideration of cases on the application of provisions of international treaty in taxation sphere.
2. Department performs the following main functions.
2.1. Tax control over controlled foreign companies:
2.1.1. generalization of results of primary analysis and monitoring of information contained in notifications, reports (abbreviated forms of reports) on controlled foreign companies:
2.1.2. analysis of financial reporting of controlled foreign companies and conclusions of audit companies on such reporting, submitted at the request of regulatory authority and other information;
2.1.3. organization and implementation of tax control over compliance with rules on controlled foreign companies;
2.1.4. sending requests to persons who are parties to transactions of the foreign legal entity and/or other participants of the foreign legal entity, request to provide documents (information) and/or conduct a counter-reconciliation.
2.2. Organization and coordination of tax control over transfer pricing:
2.2.1. organization and coordination of the primary analysis of information on the controlled transactions;
2.2.2. organization and coordination of comparison of the price level and conditions applied by taxpayers in controlled transaction with the price level and conditions in the uncontrolled transaction(s);
2.2.3. organization, coordination and support of tax control to establish compliance of conditions of controlled transactions with the arm’s length principle;
2.2.4. organization and conduct of procedure for preliminary coordination of pricing in controlled transactions.
2.3. Analytical and information support for control and audit work.
2.4. Organization of documentary audits:
2.4.1. analysis of income payments to non-residents with a source of origin from Ukraine for organizing documentary audits of taxpayers – legal entities;
2.4.2. organization, coordination and support of work of territorial bodies of the State Tax Service on aspects of conducting documentary (scheduled and unscheduled) audits of taxpayers on income taxation of non-residents, participation in conducting (conducting, if necessary) documentary audits;
2.4.3. analysis of violations of tax and other legislation regarding use of tax evasion schemes by taxpayers, non-residents and representative offices (permanent representations) of non-residents.
2.5. Methodological support of control and audit work.
2.6. Preparation of suggestions for improving regulatory legal acts and development of draft laws of Ukraine, Acts of the President of Ukraine, Cabinet of Ministers of Ukraine, Orders of the Ministry of Finance of Ukraine, which fall within the competence scope of the State Tax Service.
2.7. Coordination of work of structural units of the State Tax Service on the organization and ensuring functioning of internal control in the State Tax Service.
2.8. Analysis and management of risks in terms of forming plan-schedule for conducting scheduled documentary audits of taxpayers, in terms of making, if necessary and within the scope of competence, suggestions for including in the plan-schedule audits of taxpayers who are at risk of non-payment of taxes, levies, contributions and other payments.
2.9. Development and approval of suggestions for draft international treaties of Ukraine, conclusion of interagency agreements with tax authorities of foreign states, ensuring compliance with and fulfillment of obligations assumed under the international treaties of Ukraine, on questions falling within competence of the State Tax Service:
2.10. Organization of interaction and information exchange with state bodies of other states according to legislation of Ukraine, international treaties.
2.11. Organization of process of automatic exchange of country by country reports of international groups of companies (CbC) with competent authorities of foreign jurisdictions (states, territories):
2.11.1. organization and control over submission of country by country reports of the international groups of companies;
2.11.2. ensuring implementation of the Common Data Transfer System (CTS) User Agreement with the Organization for Economic Cooperation and Development on the exchange of CbC reports in terms of responsibilities of the CTS Competent Authority Administrator (CA Administrator) and the State Tax Service Point of Contact (SPOC).
