Experience

Experience of the Transfer Price Formation Department:

• Drafting of amendment agreements to the Crude Oil Sale-and-Purchase Contracts to bring the Contract in compliance with the new Law of the Republic of Kazakhstan ‘On Transfer Pricing’.
• Drafting of the transport contracts between seller and buyer with differential determination of oil and gas companies.
• Performance of pre-control audit and drafting of the opinions for Kazakhstani companies performing:

 - the exportation of oil, oil products and gas condensate, lead, zinc, gold, silver, grain, coal, as well as zinc and lead concentrate;
 - the importation of equipment for oil and gas and metallurgical sectors;
 with regard to compliance thereof with the transfer pricing law. Thereat, the audit was performed according to the methods and forms used by tax agencies.

• Drafting of opinions on possible facts of transfer pricing:

 - for Kazakhstani-Russian gas enterprise when exporting dry gas and gas products;
 - for Kazakhstani-China, Kazakhstani-Russian gas enterprises engaged in the export of oil and oil products;
 - for mining and metallurgical enterprises engaged in the export of oil and oil products, lead, zinc, gold, silver, coal, zinc and lead concentrate;
 - for agricultural enterprises engaged in the export of corn, wheat, barley and cotton.

• Risk assessment for enterprise with regard to operating in the state with preferential taxation (offshore).
• Comparative analysis of prices existed during the period 2004 through 2009 for the main export goods items.
• Representation of interests and protection of the rights of foreign oil companies, Kazakhstani oil companies in disputes on transfer pricing including successful appealing of audit results (over 5 bln Tenge were cancelled).
• Representation of interests and protection of the rights of mining companies in disputes on transfer pricing including successful appealing of audit results (over 12 mln Tenge were cancelled).
• Monitoring of transfer pricing transactions of the companies performing export of cooper, steel, lead, zinc, gold, silver, aluminum oxide, chrome ore, etc. in order to submit the results to the Tax Committee of the Republic of Kazakhstan.
• Drafting of Agreements for Transfer Pricing Application that will be concluded between fiscal agencies and tax payers.