2. Allow the taxable person to conclude a unilateral ABS if, after examination of a draft APA, the Russian and foreign tax authorities do not reach a mutual agreement. Unilateral APAs It is possible, however, that a taxpayer can negotiate a unilateral APA in which only the taxpayer and the IRS participate. In this case, both parties are only negotiating an appropriate TPM for U.S. tax purposes. Where the taxable person is involved in a dispute with a foreign tax authority concerning the transactions covered, he or she may remedy the dispute by requesting the competent authority of the United States to initiate a mutual agreement procedure. This obviously presupposes the entry into force of an income tax agreement applicable abroad. 6. The possibility of extending the provisions of an APA to a period from the first day of the calendar year in which the taxable person first applied for the conclusion of an APA until the date of entry into force of the APA if, after examination of the first application, an APA was refused on the grounds that no agreement was concluded with the tax authorities of a foreign counterparty. The purpose of the draft law is to optimize the procedure for concluding agreements on increased prices (hereinafter referred to as “APAs”), to define the conditions under which transactions can be considered controlled and to make other specific amendments to the provisions of the Russian Tax Code.
Bilateral and multilateral SAAs are generally bilateral or multilateral, i.e. they also include agreements between the taxable person and one or more foreign tax administrations, under the control of the cartel procedure (POP) established in income tax treaties.  The taxable person benefits from such agreements, as it is certain that the income related to the covered transactions is not subject to double taxation by the IRS and the competent foreign tax authorities. Irs policy is to “encourage” taxpayers to seek bilateral or multilateral APAs where there are provisions of the relevant authorities. On 27 March 2020, the Russian Ministry of Finance published an updated version of the draft law “On the amendment of the first part of the Russian Tax Code aimed at improving tax control over prices and on the procedure for concluding agreements on advanced prices” (`the draft law`). An advance pricing agreement (APA) is a prior agreement between a taxable person and a tax service on an appropriate transfer pricing method (TPM) for a number of transactions that are being negotiated over a given period (so-called “hedged” transactions). . . .