The price of the question is cotton
The rules (procedures) of transfer pricing for cotton fiber were approved
At the initiative of the National Chamber of Entrepreneurs of Kazakhstan "Atameken" was raised the question of choosing a source of information about market prices for export of cotton fiber.
This issue was worked jointly with the Ministry of Agriculture, the State Revenue Committee of MF RK, the Ministry of National Economy of RK. And the decision of the Government of RK dated by April 29, 2016 # 255 approves the appropriate methodology for transfer pricing of cotton fiber. Experts of the department of agricultural complex for three years worked on the situation when several organizations engaged in cotton exports to Russia faced additional charges imposed by the tax authorities.
First of all, this technique is necessary to select and use appropriate sources of information on market prices of cotton fiber, which will be applied in the implementation of inspections by tax inspectors. "The fact is that due to the wrong choice of price information and imperfections of the method of calculation (to supply cotton to the CIS countries were used prices for the South-East Asian countries), the audited entities were charged with multi-million dollar fines on non-existent profits. All this has led to the bankruptcy of entrepreneurs and worsened the investment climate in the cotton industry.
It should be noted that due to unreasonable additional charges as a result of tax audits there was an outflow of investment in the cotton industry and cotton production in 2015, according to data of the Statistics Agency, it declined by 22% compared to 2014.
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