No manager will be able to do his job properly until there are definite regulations for all state companies to reject prices out of the market range.

For years there has been an important categoryof privately held companies which have no right  to presumption of innocence regarding taxes. The tax authority doesn’t trust companies part of a group that state "When I carry out transactions with my mama, I use only the market price, cross my heart and hope to die".

Therefore, when the tax authority goes to the privately held company, they do not ask whether they auctioned or not, or the name of the manager and what kind of person he is. They only ask whether the price is arm’s length.So why wouldn’t the state company be required to do the same, especially if we presume it to be part of an interest group? 

You can find the full article on Author: Adrian Luca, TPS