Cases

Mikhail Begunov, Nikita Zharov

The client (mainland - a company in the UAE) was interested in legal support of an acquisition of assets in India. The TC team acted as a legal advisor within the framework of the project on the UAE side.

Our experts accompanied the client in the process of obtaining authorization from the UAE governmental authorities for the transaction and assisted him in preparing an agreement for the acquisition of an asset in India.

Mikhail Begunov, Nikita Zharov

A client registered a company in an IFZA freezone in the UAE. He needed to open a corporate account with a bank in the UAE for settlements with counterparties.

The TC team helped the client to open corporate accounts (in AED / USD) in a bank in the UAE. As part of the project, our specialists assisted with the preparation of the necessary documents and communication with the bank's representatives.

Ivan Tsvetkov

During the audited period, the joint-stock company carried out water supply and water disposal of facilities, including residential buildings, industrial facilities and social infrastructure facilities. As a result of the field tax audit, the tax authority concluded that the Company had received an unjustified tax benefit in the following episodes: (1) provision of motor transportation services by a person who is not a party to the contract; (2) unjustified inclusion of amounts of written-off accounts receivable in non-operating expenses; (3) Illegal non-recovery of VAT, non-deduction of VAT and overstatement of expenses on transactions, VAT and expenses on which were reimbursed by subsidies as gratuitous contributions to property that did not increase the Company's authorized capital; (4) Illegal non-inclusion in non-operating income of a part of the subsidy equal to capital investments in depreciable real estate and written off by the Company through the depreciation mechanism. The Company, while not disputing the amounts of additional charges imposed by the tax authority in the episode involving the unjustified inclusion in non-operating expenses of amounts of written-off accounts receivable, disagreed with the tax claims in the other episodes.

Following a study of the legal position, which was developed by Tax Compliance specialists based on the results of the analysis of the actual circumstances of the dispute, the tax authority made a decision to satisfy in full the Company's claims in respect of profit tax. In addition, the tax authority satisfied the Company's claims (1) on the necessity to carry forward the unused amount of losses of previous years to reduce the taxable base for profit tax, (2) on the necessity to reduce the amount of the penalty due to the presence of mitigating circumstances (the amount of the penalty was reduced by 99%), as well as (3) on the calculation of penalties taking into account the moratorium on their accrual. Thus, the tax authority satisfied the Company's claims with respect to profit tax, the need to carry forward the unused amount of losses from previous years, and the need to reduce the fine and penalties in full, which significantly reduced the amount of additional charges - over RUB 10 million (approximately 66% of additional charges).

Mikhail Begunov, Nikita Zharov

The client purchases certain goods from suppliers, on the sale of which the suppliers apply a reduced rate of VAT. The client subsequently sells these goods as part of its own business activities, subjecting them to a VAT rate of 20%.

The client was interested in analysing the possibility of applying a reduced VAT rate when selling the said goods, as well as the mandatory legal requirements that the client needs to comply with in order to achieve the said objective.

As a result of the project, the Tax Compliance team managed to assess tax risks associated with the application of the reduced VAT rate for the Client and to suggest ways to minimize them.

In particular, in the course of the project Tax Compliance specialists: (1) analyzed documentation relating to the products sold by the client; (2) developed proposals on changing the document flow in order to apply the reduced VAT rate.

Mikhail Begunov, Nikita Zharov

A client provides IT services for a parent company. The company believed that the IT services provided to the parent organisation may not comply with the provisions of the Russian Tax Code for the application of tax exemptions. The company contacted Tax Compliance in order to assess the possibility to apply tax exemptions.

The Tax Compliance team as a result of the project: (1) analysed the client's intercompany agreements to determine the validity of tax exemptions for IT companies; (2) developed proposals to adjust agreements and primary documentation to ensure their compliance with tax legislation.