Tax Control and the Most Common Deficiencies in Transfer Pricing
The general course of tax control is regulated in § 44 to § 47 of Act No. 563/2009 Coll. on Tax Administration (Tax Code) and on amendments to certain laws. The purpose of tax control is to examine taxpayer procedures in setting transfer prices, i.e., whether they chose an appropriate transfer method, have sufficient documentation for verified transactions, can transparently provide explanations for individual cases, chose the correct basis for comparability analysis, and can adequately demonstrate the application of the arm's length principle in related party transactions carried out in the given tax period.
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