Specific Tax Issues Relating to Intra-group Services of Multinational Companies

The aim of the graduating work is to analyze specific tax issues relating to Intra-group Services of Multinational Companies. The research covers such aspects as the intra-group services (concept, types and content); price setting; the study of legal documents of the Organization for Economic Cooperation and Development and the impact of them on the legislative base of the Russian Federation; and includes the review of judicial practice in relation to these issues. Based on the results of the Russian tax legislation analysis, it was discovered that the legal regulation of intra-group services of multinational companies is mostly consistent with international practices, since the legislation was based on the principles formulated in the OECD Guidelines on transfer pricing of multinational companies and tax administrations. However, the analysis of the tax authority’s approach and court decisions revealed the imbalance between public fiscal interests of the state and private interests of taxpayers. The other negative issue is a desire of the tax authorities to move the burden of proof of economic and commercial purpose of intra-group services on the taxpayer that breaks the basic principle of taxation – "the presumption of good faith of the taxpayer." Finalizing the research the author provides some recommendations in order to improve tax regulations and help to the taxpayers to pass tax audit successfully.