PMCG Launched the Project on Taxation Methodology for Determining Market Prices

PMCG, with the support of USAID Economic Prosperity Initiative (EPI), has launched a project on determining market prices (so called “Arm’s Length” prices) for Georgian tax authorities based on OECD guidelines and best practices worldwide. The OECD promotes the arm’s length principle in tax treatment of non-arm’s length (related or associated) cross-border transactions.

The philosophy of this assignment is:

• To establish an effective overall system for determining arm’s length prices or market prices (term used in Georgian tax code), which will benefit taxpayers as well as tax authorities;
• To create a clear and safe tax environment;
• To promote compliance and;
• To decrease fraud risks in Georgia.

This assignment will be implemented through setting up effective “Arm’s Length” pricing rules and practices that will be reflected in the comprehensive Audit Procedures Manual.

PMCG is a partner of the USAID large-scale Economic Prosperity Initiative (EPI) project which is being implemented by a team of international and local consulting companies led by Deloitte. This comprehensive program aims to improve Georgia’s overall economic competitiveness through assistance designed to: 1) expand and deepen the country’s economic governance capacity; 2) improve agriculture sector productivity; and 3) strengthen targeted non-agricultural value chains that have the highest growth potential.