On February 25, 2014, the RF SAC Presidium set aside the RF SAC decision deeming the form of notification on controlled transactions approved by the FTS Russia compliant with the RF TC and returned the case for reconsideration (RF SAC Presidium Ruling No. 18588/13 of February 25, 2014, "Ruling"). In the recently published Ruling, the RF SAC Presidium made the following determinations which may be significant for the application of transfer pricing rules:
Notification on controlled transactions should not be limited to general information on the mere fact of the transaction without the disclosure of information specifying the subject of the transaction. The information in the notice should be sufficient for initial analysis and the adoption of a substantiated decision as to whether a tax audit of the controlled transaction/group of transactions is necessary,
However, the notification form does not have to contain information sufficient to enable a tax audit without the use of additional tax control actions; otherwise, review of the notification would substitute subsequent phases of transfer pricing control. The list of information that may be provided in the notification form is limited to the information provided in art. 105.16(3) TC RF.
The above-described position of the RF SAC Presidium may lead to a reduction in the administrative burden of notification for taxpayers (in particular, with respect to filling out page 1Б with respect to the subject of the transactions) as a result of reconsideration of the case.