Russian Adjustment Profits Rise

~1-minute read. This article is part of our CrossBorder Audit Alert series.

Adjustments in Russia Climb Higher and Higher

In 2015, RUB 142M (USD $2.2M) was the average tax adjustment from transfer pricing. Taxpayer voluntary adjustments equaled RUB 30B (USD $460M) in fiscal year 2015, up from RUB 15B (USD $230M) in fiscal year 2014. This upward trend is expected to continue over the next several years.

The Russian Supreme Court confirmed that local tax authorities are entitled to adjust prices within intra-group transactions if unjustified tax benefit is proven. This ruling has led to RUB 1.2B (USD $18.5M) of tax adjustments.