Tax Authorities in Ukraine Mistakenly Apply Only Platts Standards for Transfer Pricing.

Ukrainian businesses often go to court to challenge additional tax assessments, and there are already many successful cases where tax authorities' decisions have been overturned with the conclusion that the price comparison method should only be applied when it is as reliable as the profitability method.

Courts emphasize that the burden of proof lies with the tax authorities. Therefore, if a company has conducted a thorough analysis, the tax authorities must first challenge this approach and only then propose their own method.

However, some courts support the tax authorities' position, believing that these aspects are not decisive. One judge noted that only one database, namely Platts, should be used for price comparison when exporting iron ore. At the same time, tax legislation does not limit taxpayers to just one source of information, allowing a wide selection of sources.

This position is also supported by international practice, particularly the OECD Guidelines (the primary document on transfer pricing rules). The Guidelines do not require the use of a single source of information or method of analysis. It is worth noting that even Ukrainian tax authorities do not always use the same source of information during their audits.