A controlled transaction is what and who gives it?

Taxpayers have mastered another form of providing information on their own income, which is called reporting on controlled transactions. In order for the transaction to be called controlled, it is necessary to check it for compliance criteria of this category, and also to compare the procedure for the formation of these documents with the main rules.

Interdependent persons

The Tax Code clearly spells out the basic definitions concerning the concept of a "controlled transaction". This recognition of both individuals and legal entities is interdependent, which affects the results of taxation. This definition is assigned only for those types of transactions where the relations between the two parties directly affect the conditions and final results of the negotiations. This aspect is very important for tax legislation, as the financial component of transactions depends on the results of agreements, part of which is always sent to the state treasury.

Recognition of persons as interdependent

In order for individuals to be officially recognized as interdependent, the degree of actual participation in the capital and the possibility of its change are analyzed. This aspect is usually influenced by the terms of the previously concluded agreement, as well as the ability of a certain person to influence decisions that are important for the transaction.

The interdependent persons are:

1. Organization, if at least one company from participating in the transaction takes part in the work of another company. This aspect is taken into account only if the share of total material investments in an outside company is more than 25%. Both direct and indirect participation are important.
2. Organization and an individual, if one of these participants in the transaction has a share in another firm. From the total number of assets, it must be at least 25%.
3. Organization, subject to the participation of any third party in their activities, with more than 25% of assets. It is important that the share of participation in both firms exceeds this mark.
4. Organizations, if in their structure there are executive bodies that have been appointed or approved for their posts by the same person. Only single executive bodies, elected by one person or their group, are important, provided that a specific person supervises their formation in all firms participating in the transaction by at least 50% of the total membership.
5. The organization and its executive body, which for any legal reason organized the transaction.

The parties to any transaction can recognize themselves as interdependent if they consider that the taxation procedure adopted for such cases is optimal for them. At the same time, they must prove that their relationship has a direct or indirect effect on the amount and outcome of the transaction.

Many firms often conduct controlled transactions. The criteria for their identification vary, but to ensure the legality of each treaty, they should be taken into account. Where all the pretexts on which a controlled transaction can be conducted are fixed, this is Article 105 of the Tax Code.

The procedure for recognizing a controlled transaction

Control of prices is not always ensured, even though the parties to the transaction are interdependent persons. However, most often it is between such persons that they are held. There are exceptions to the rules for which a transaction is not exactly controlled.

The highest limit of the amount is set, at the excess of which it is impossible to say that this is a controlled transaction. This is possible only if all aspects of the transaction are carried out in the territory of the Russian Federation and the parties conduct all operations for the acquisition and extraction of benefits also in Russia, while the income of all parties does not exceed 1 billion rubles. It is not profitable for any of the participants to be officially exempt from income tax payments or not to pay the mineral extraction tax. In this case, the transaction may lose its reason, since the total income of all persons should not exceed 60 million rubles.

The procedure for recognizing transactions as controlled

The RF Ministry of Finance approved the procedure, which refers to what relationship is called a "controlled transaction". This concept is usually specified on the basis of the summation criterion, which is often the most important for the state as a whole, as well as for taxation authorities. In order to calculate the total amount of income for one year, it is necessary to add up all received material assets from each counterparty who contributed money for the specified period.

Sometimes when calculating total revenues for a calendar year, not only single transactions are taken into account, but the income from a controlled transaction is also summed up from agreements with different persons. The court, guided by Article 105 of the Tax Code of the Russian Federation, can confirm that the transaction is indeed controlled if the legal or natural person can prove that the particular transaction is part of a certain group of agreements, although it is considered independent.

If persons are recognized as related, and one of the participants in the transaction is not considered a tax resident of the Russian Federation, then any agreements concluded between persons in which such person participates are recognized as controlled. To do this, the amount of revenue from the transaction will not be taken into account, it can be any. This fact is confirmed by the information provided by the RF Ministry of Finance.

Article 105 of the Tax Code clearly states that a fixed amount that regulates the possibility of recognizing a transaction as controlled, applies only to those participants where all are tax residents of the Russian Federation. In legal practice, this aspect solves the presence among participants in the transaction of at least one person who is not an official resident. If such a person is present, then the amount of income from the transaction can be unlimited.

The ability to conduct a transaction between non-interdependent persons as controlled

Equalization of a transaction concluded between persons not recognized as interdependent, to those that are conducted among interdependent people or organizations is possible if it is conducted with the direct participation of intermediaries. The other participants who undertake controlled transactions, interdependent persons are obligatory.

The Tax Code of the Russian Federation provides that during a transaction involving intermediaries, persons may be recognized as interdependent if the participation of intermediaries in them is in accordance with established rules.

1. Have a limited range of powers. They can only organize the processes of selling goods, without pretending to other functions.
2. Independently do not use assets, do not have direct access to them, do not bear any risks in the transaction.

You can not do any actions with non-interdependent persons within the framework of concepts where examples of controlled transactions are conducted. This is a very important rule, so the intermediary must always adhere to it.

The Tax Code of the Russian Federation does not consider the amount of income that is allowed for the recognition of a transaction controlled by the intermediary. In legal practice there are not many cases of disputes in this regard, therefore, in case of ambiguous situations and the refusal of state bodies to recognize a controlled transaction, it is necessary to apply to the court for further decision-making. It is impossible to predict the outcome of such a trial at this time.

The Ministry of Finance has decided that there are no restrictions on the amount at the conclusion of this transaction through an intermediary. If the transaction is concluded according to all rules, the occurrence of nit-pickings from state bodies or refusal to assign a status that regulates examples of controlled transactions is very rare.

Some issues still arise and the court rarely, but regularly have to deal with the puzzled questions of the persons participating in the transaction, since with very large amounts of income it is not always possible to make the agreement status of the controlled one.

This complexity arises due to the release of a later official letter from the Ministry of Finance, which indicates that the agency has a financial criterion, but applies it only to transactions of a large scale. Depending on the nature of the transaction, as well as the direction of the enterprise, which affects the goods to be delivered and purchased, each party's revenue limit is calculated.

Other transactions between non-related parties that are recognized as controlled

1. Foreign trade in goods, which are included in the main list of the most influential in the world exchange market. This oil and petroleum products, any metals, minerals, which can be considered a class of mineral fertilizers, precious stones and metals.
2. Realization of the transaction between persons, at least one of whom is a permanent resident or tax resident of the country that is included in the list compiled by the Ministry of Finance, on granting privileges for taxation of enterprises.

The transaction is easily classified as controlled if one of its participants is a resident or resident of a territory belonging to off-shore zones. Therefore, notifications for controlled transactions must be present in the reporting. And this is necessary. It is necessary to take a sample of the notice of controlled transactions separately and fill it out correctly. This entitles you not to disclose or publish information relating to financial transactions. This aspect applies to representative offices of companies registered in Russia, which are located on the territory of such zones.

If a transaction becomes controllable due to the participle of any of its participants in the offshore zone, then at least one organization must be registered in such territory. In order for a transaction to be recognized as legitimate, a notice of controlled transactions must be correctly completed. The sample of filling can not be changed or skipped any items.

What information is provided to tax authorities?

In order to understand whether the transaction is classified as controlled, it is necessary to check its concept and the circumstances under which it is conducted to comply with Article 105 of the Tax Code. Also, you should review notifications for monitored transactions. If they can easily be classified as such, then when forming tax reports, special attention should be paid to the price of the contract.

Especially important are the differences in value compared to contracts with other contractors, as well as the degree of compliance with the generally accepted market price for a specific period, which are narrated by documents for specific controlled transactions. Filling of papers necessarily passes carefully, all details are taken into account.

Companies that carry out transactions with interdependent persons, that is, if the aggregate criterion complies automatically, fall under the notion corresponding to determining which transactions are controlled, are obliged to send special notifications on controlled transactions to the tax authority to which are attributed at the location. The person who submits the documentation must always attach this paper to the shared folder. The need to adhere to this rule is evidenced by the order of the Federal Tax Service of Russia. One should always remember the concept that a notice of controlled transactions has, that it is a general report on the work done.

If the employees of the Federal Tax Service want to check additional details of the transaction, then at their request the organizations must provide all the necessary documentation. Article 105 of the Tax Code of the Russian Federation regulates this aspect and calls for the provision of specific pepper documents upon request, which should contain the basic information on the transaction.

The activity of a taxpayer having involvement in a particular transaction

The list of methods used to obtain and systematize information on one-time and total income is indicated. In addition, explanations should be provided that substantiate the choice of a particular method, data on sources of information from which the information was used, indicate the exact amount of all the revenues received for a particular transaction, list the exhaustive list of expenses.

Rules for preparing reports

To immediately provide the most correct, systematic and authentic information, it is necessary to monitor prices in advance during the conduct of a controlled transaction. It is desirable to prepare documentation at a time when any agreements are directly concluded, the price of products, services, or payment for a specific lot of goods occurs.

If you compile all the necessary documentation on time, taxpayers can immediately independently assess the correctness of a controlled transaction. Who handles the reports, he calculates the amount that the parties will have to pay in the tax. Timely calculations will allow you to make adjustments to the documents when there are any changes, and not to search for information after a certain amount of time. We should not forget to attach to the list of documents the notice of controlled transactions. Who gives the main documentation, he is responsible for compliance with this rule.

Stages of preparation of information

1. Analytical work on expenses for controlled transactions. Who surrenders, he must organize the filling of papers on the analysis, drawing up schedules.
2. Planning and calculation of the necessary volume of all documentation, which is necessary to provide reports to the tax inspection. The necessary time for preparation of all securities is determined in advance in order to submit a report on controlled transactions on time, to allocate time for their unhurried preparation, verification.
3. Description of all areas of activity of a person who is one of the parties when concluding a transaction.
4. Checking and comparing the financial terms of the transaction, conducting an analysis of all aspects of the activities of the parties to the agreement.
5. Compilation of complete descriptions of all interdependent persons who participate in the transaction. Also, you need to select the party to be tested if the transaction is officially recognized as controlled or conforms to the standards for assigning this status.
6. Methods and basic principles of pricing are chosen in advance.
7. A full economic analysis is carried out taking into account all aspects of the transaction, understanding its benefits and profitability for a particular participant.
8. A documentary base is being established that is checked by several specialists and is completed to compile a document entitled "report on controlled transactions".

The documentation can only indicate the information that is confirmed by the data held by the firm. At the request of the Federal Tax Service, the organization must provide all official confirmation of the information provided. Such a request the employees of this service can send to confirm the completeness of the information and verify the payment of taxes.

When the level of detail is estimated, the degree of detail in the documentation, it is necessary to be guided by clause 6 of Article 105 of the Tax Code. The amount of information provided should be commensurate with the degree of importance of the transaction, its scale, and the size of the benefits for each participant.

Voluntary change of tax bases

Paragraph 6 of Article 105 of the Tax Code of the Russian Federation provides that it is not possible to apply prices that do not correspond to market prices when they are concluded, if they are much lower than them. If the company was found to intentionally reduce the official amount of payments in order to reduce the tax deduction, then its owners have the opportunity to independently correct the cost and make deductions in favor of the state within the standard.

All adjustments are made with the mandatory submission of a tax return, which already indicates income taxes intended for payment for a specific period. If the company is not considered a payer for taxes, a declaration is provided, which must be paid in due time for the delivery of all such documents.

Until all changes are registered in the declaration, it must be submitted to the tax authorities together with an explanatory note detailing the total amount that a particular person is obliged to add to the initial calculations.

In the explanatory note, information about controlled transactions with respect to which corrections have been made is mandatory. Indicates a new amount of tax, the serial number of the contract, the date of its conclusion. It is necessary to write down the initial amount separately, and then to exactly give the amount of material resources that will be added to the original amount intended for the payment of the tax payment.

Required items in documents

Full information about all persons related to the controlled transaction is prescribed. Specifies the personal tax ID, as well as the full name of the organization or the name of the IP. It is allowed to add any other information that will help, in the opinion of the taxpayer, to resolve the payment situation more quickly and to facilitate the work of the tax inspection staff.

In order to make any changes to the VAT tax base, all declarations that have been paid for the expired period must be submitted. When correcting any data, it is mandatory to make meaningful information in the sales book. The basis for the formation of a record is a document in which the exact amount of the adjustment is indicated. The information provided should exactly correspond to the amount of the tax taken from the sale of goods.

When conducting a controlled transaction, it is necessary to fill in all the documents correctly and to set conditions that comply with the rules for the conduct of these agreements. Compliance with the order of documentation and compliance with the minimum acceptable prices will help organize the transaction most successfully.