Cases

Cases

  • Production Successfully
    Pre-court settlement of tax disputes

    Challenging the results of a field tax audit of a Russian water supply company

    • Employee involved

      Ivan Tsvetkov

    • Process description

      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.

    • Result

      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).

  • Production Successfully
    Consulting in the UAE

    Opening a corporate bank account in the UAE

    • Employees involved

      Mikhail Begunov, Nikita Zharov

    • Process description

      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.

    • Result

      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.

  • Construction Successfully
    Assistance in granting tax deferrals (installments)

    Assistance in obtaining installment payments for a construction company

    • Employee involved

      Alexey Stanchin

    • Process description

      The tax authority issued a decision to hold a company liable for an offense based on the results of an on-site tax audit. The Inspectorate sent the taxpayer a demand for payment of debts amounting to 19.6 million roubles.

    • Result

      On behalf of the taxpayer, Tax Compliance consultants applied for installment payment for 6 months in equal installments. The application for installment payment was submitted as soon as possible after receiving the demand for payment of the debt. As a result, the Inspectorate granted installment payment for 6 months.

  • IT Successfully
    Tax support for IT-business

    Analysis of tax risks associated with the withdrawal of the IT function

    • Employees involved

      Mikhail Begunov, Nikita Zharov

    • Process description

      The Client was considering the possibility of separating the IT function from the management company structure within the Group into a separate legal entity. In this regard, the Client was interested in analysing (1) the corporate structure of the Group for risks of claims related to the "split" of the business; (2) the business contracts of the newly established IT Company for compliance with the requirements of tax legislation in terms of the application of tax benefits for IT companies.

    • Result

      In the course of the project implementation Tax Compliance specialists: (1) conducted a comprehensive analysis of interaction between the Group and IT-companies and prepared proposals for adjusting the corporate structure in order to reduce risks in terms of "splitting" the business; (2) developed proposals for adjusting the provisions of the agreement in order to ensure its compliance with the requirements of tax legislation in terms of applying tax benefits for IT-companies.

  • Production Successfully
    Consulting in the UAE

    Supporting the procedure of dismissal of an employee of a mainland - company in the UAE

    • Employees involved

      Mikhail Begunov, Nikita Zharov

    • Process description

      The client (mainland - a company in the UAE) was interested in legal support of the procedure of dismissal of an employee. The process was complicated by the fact that it had to be completed within a short period of time before the employee left the UAE.

    • Result

      The TC team assisted the client in the framework of dismissal of an employee, in particular: (1) drafting the necessary documents; (2) supporting communication with the UAE governmental authorities.