Taking into account best international practices in terms of transfer pricing and its actuality in the modern corporate world, as well growing interest of AmCham members to this topic, AmCham invited presenters from USAID funded Tax Reform Project (TRP) to meet with its members and make a relevant presentation. The presenter was Anzhela Mesropyan, Expert on Transfer Pricing. Gagik Poghosyan, TRP Chief of Party was also present at the meeting. Around 20 AmCham members attended the event.
Ms. Mesropyan thoroughly described the concept of transfer pricing, its evolution in Armenia and presented important provision of the proposed draft, after which the floor was opened for discussion.
AmCham members` reaction to the presentation was rather controversial. Even though the participants agreed that the concept in itself is not a bad one, the main fear was that the law may become a potential leverage in the hands of tax authorities to exercise discretionary treatment practices, favoring one company over the other. AmCham members also expressed doubts as to how the law is going to address the issue of increasing foreign investments to Armenia, which is one of the main reasons it is put in circulation now. A number of critical questions was asked and answered.
The TRP experts made their best to provide comprehensive and informative responses to the questions and promised to raise the concerns and suggestions during the further discussions of the draft law in Armenian government. AmCham will be monitoring the developments and will continue discussions and advocacy activities on this issue.