Cases

• Employees involved

  Mikhail Begunov, Nikita Zharov

• Process description

  The tax authority sent a Russian branch of an international engineering group a request for documents and information. The auditors analyzed the intra-group transactions of the Russian branch. In order to assist in preparing a response to the request, the Client contacted Tax Compliance specialists.

• Result

  As a result of the project, the Tax Compliance team: (1) analyzed the documents and information requested by the tax authority; (2) drafted a timely response to the tax authority's request; (3) described the client's tax risks in relation to intra-group services.

Initially, the client set the task of structuring transactions between interdependent persons within a group of companies

• Duration

  2019

• Purpose

  As a result, successful structuring and tax planning efforts eliminated risks in excess of 80 million ₽.

• Employee involved

  Yulia Pavlova

• Process description

  In the course of structuring the transactions, risks in terms of price thresholds between interdependent companies within the group were established, regulations and additional rules were developed and implemented by all companies of the group to justify the correct application of prices when selling products within the group, as well as to support the feasibility of transactions between them.

• Result

  As a result, successful structuring and tax planning efforts eliminated risks in excess of 80 million ₽.

Claims of the tax authority to have "unscrupulous contractors" in the chain of subcontractors were disputed.

• Duration

  December 2018 - April 2019

• Employees involved

  Alexander Dmitriev, Yulia Pavlova

• Process description

  With the help of additional tax control measures, the reality of subcontractors' activities was proved. The absence of intent in the client's actions was proved. The tax authority calculated tax liabilities without primary documents.

• Result

  Claims of the tax authority on the field inspection report were appealed and withdrawn. A positive pre-trial appeal against the acts of the tax authorities in favor of the taxpayers under 54.1 of the Tax Code was formed.

Reduced the amount of damage by six times and achieved the termination of the criminal case

• Employees involved

  Mikhail Begunov, Alexander Dmitriev, Yulia Pavlova

• Process description

  At the stage of pre-trial appeal of the tax authorities' decision, the law enforcement officers included in the audit, without waiting for the completion of the tax audit, forwarded the collected materials to the investigating authorities for initiation of a criminal case under part 2 article 199 of the Criminal Code. The criminal case was brought against the CEO and an unidentified group of people from the company's management. The amount of damage, according to the tax and investigative authorities amounted to more than 500 million rubles.

• Result

  In accordance with the correctly built strategy of defense in the investigation of the criminal case and as a result of additional measures of tax control, lawyers and employees of Tax Compliance provided documents on "tax reconstruction", disclosed the real tax liabilities, as well as conducted an examination of the costs of transporting goods, which allowed to reduce the damages to 80 million rubles and termination of the criminal case on the fact of absence of corpus delicti in connection with the payment of arrears.

Services were rendered to the beneficiary of a construction company for retrospective disclosure of information on participation in a controlled foreign company and on the existence of bank accounts opened outside the Russian Federation.

• Employee involved

  Yulia Pavlova

• Process description

  At the time of drawing up and submission of notifications to the tax authorities the statute of limitations under p. 1 of Article 129.6 of the Tax Code had not expired, i.e. the client still had the risk of tax liability for untimely disclosure of information about the CFC. In order to exclude tax liability for failure to submit CFC notifications for previous tax periods, the client was provided with services to prepare a special tax declaration allowing to apply the tax amnesty under the Federal Law of May 29, 2019 № 110-FZ within the voluntary declaration of their assets. Also within the framework of the project we assessed the grounds for the absence of an individual's obligations to withhold personal income tax from the profit of a CFC.

• Result

  As a result of legal defense, tax liability and penalties for late submission of CFC notifications due to the application of tax amnesty provisions were avoided