Non Pricing Agreement

– on the need to amend the draft APA – a stamp duty of RUB 2 million to re-examine the application for conclusion of the APA is not levied – at the end of the APA or – on the refusal to conclude the APA if it is not possible to reach a mutual agreement with the competent authority of the foreign State 5. Conclusion of the APA: At this stage, the taxpayer must inform the FTT, in a manner of his choice, of his agreement (disagreement) with the FTT decision. If such a notification is not submitted within thirty days of receipt of that decision, he shall be deemed to be the taxable person who does not agree with the decision. An accused may argue that there was no agreement, but if the government or a private party proves a simple price-fixing agreement, there is no defence against it. Defendants must not justify their conduct on the fact that prices are reasonable for consumers, that they are necessary to avoid avoiding avoiding competition or that they stimulate competition. The Russian Ministry of Finance issues a decree authorizing the procedure for concluding ex ante price agreements between Russian and foreign tax authorities A: No. Competitor pricing can be a good deal and often occurs in highly competitive markets. Each undertaking is free to set its own prices and may charge the same price as its competitors as long as the decision was not based on an agreement or coordination with a competitor. Depending on the order, the procedure for concluding an advance pricing agreement (“APA”) contains the following peculiarities: all price similarities or price changes that occur at the same time are not the result of price cartels.

On the contrary, they are often the result of normal market conditions. For example, the prices of raw materials such as wheat are often identical, because the products are virtually identical and the prices charged by farmers all go up and down together without agreement between them. If a drought leads to a decrease in the supply of wheat, the price of all farmers involved increases. Increased consumer demand can also lead to uniformly high prices for a product with limited supply. The Regulation aims to fill the existing legal gap resulting from the absence of a formal procedure for concluding advance settlement agreements on cross-border transactions with foreign tax authorities and to encourage taxpayers to use this instrument. . . .