On 6 September 2019, the Ukrainian Ministry of Finance (MOF) has published Order No. 307 of 16 July 2019 in the official gazette amending Order No. 399 of 30 March 2017. The amendment clarifies the procedures to audit compliance with the arm’s length principle. The changes are as follows:
Amendment to section IV
The interruption of the validity period of the inspection shall be effected from the moment when the taxpayer’s actions begin to be considered by the court and issued by an order, the copy of which shall be handed over to the taxpayer or his authorized representative for receipt or sent to the taxpayer no later than the next business day.
Amendment to section V
The tax authority has the right to hold meetings with the taxpayer in order to discuss the method of determining the eligibility of controlled transactions for the principle of “arm’s length” applied during the audit.
The order is effective from 7 September 2019.
