As Ukraine integrates with the world economy, experts say it
must bring its taxation system in line with international standards
and better abide by rules that are championed globally.
Doing so is in the country's best interests. Ukraine's
allies and financial supporters also expect Kyiv to align its
taxation policies with best practices worldwide.
Thus, the Organization for Economic Cooperation and Development
and the European Union, supported by the International Monetary
Fund and the World Bank, are pushing for the initiative known as
BEPS (Base Erosion and Profit Shifting), part of which addresses
transfer pricing rules. The goal of BEPS is to ensure that taxes
get collected "where economic activities generating the
profits are performed and where value is created." In turn,
rules aim to ensure that companies set prices for their
"in-firm transactions" at market prices so that such
transactions can be properly taxed.
