Abstract
The subject of the research is theoretical approaches to the application of methods of establishing the compliance of the conditions of controlled operations with the principle of "outstretched hand". The purpose of the article is to carry out an analysis of the existing methods of establishing the compliance of the conditions of economic transactions with the principle of "stretched hand" to prevent financial risks for economic entities based on a systematic approach. Method or methodology of research. The article uses methods of scientific abstraction, system method, methods of analysis and synthesis. Results of the article. The article provides an in-depth analysis of the application of methods of establishing compliance with the conditions of economic transactions to the "arm's length" principle, which makes it possible to prevent financial risks for business entities. At the same time, for the possibility of practical and timely application of the specified methods, there is a need to take organizational and management actions to provide tax and financial authorities with access to worldwide electronic services, price information resources, etc. on a permanent basis. Field of application of results. The results of the research can be used in the process of modernization and implementation of the tax policy of the state. Conclusions. The practical application of the methods of establishing the compliance of the conditions of controlled operations with the "arm's length" principle is quite difficult. At the same time, under the current legislation, business entities are partially limited in their free choice of the method of establishing the compliance of the conditions of a specific controlled transaction with the "arm's length" principle. However, the legislator has worked out a detailed algorithm regarding the grounds for switching from the first to the fifth method, which may prevent litigation between companies and regulatory bodies in the future
Keywords
tax control; controlled transactions; arm's length principle; transfer pricing
References
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