On 1 November 2013, the Ministry of Finance issued Letter No. 03-01-18/46763 clarifying in which cases the transactions concluded between entities which incurred losses should be considered as controlled transactions for the purposes of transfer pricing regulations.
The Ministry of Finance referred to article 105.14 of the Tax Code which provides, among other conditions, that transactions may not be considered as "controlled transactions" if the parties to such transactions do not have i…