OPERATION OF THE CONSOLIDATED GROUPS OF TAXPAYERS IN THE RUSSIAN FEDERATION: CURRENT ISSUES AND PROSPECTS

Abstract

In the year 2012 to large corporations in Russia was given the opportunity of creation of consolidated groups of taxpayers. Consolidated tax regime allows holding structures and further use in domestic transactions transfer prices, significantly different from the market. However, the practical application of prescribed in law paid distribution mechanism within the framework of the new group income tax between the regions seriously alarmed many jurisdictions, losing revenues of local budgets. Also a certain resonance with the authorities summoned used corporations deduct all losses of the group members of total profits. In the face of a budget deficit the Russian Government declared a moratorium on the formation of new groups and initiated adjustments to the regulatory framework.