Support of tax audits

Support of tax audits

  • Retail 520 millions ₽
    Support of tax audits

    Protecting the interests of the largest supplier of oil and gas equipment to domestic and global industry leaders.

    The Federal Tax Service inspected the client and assessed additional VAT and income tax. Tax Compliance experts managed to reduce the additional charges by 85%.

    • Employees involved

      Mikhail Begunov, Yulia Pavlova

    • Process description

      The tax audit was carried out in respect of the Client; as a result of it the tax authority decided to assess additional VAT and profit tax on the relations with the controllable transit counterparty created for the purpose of artificial document flow in order to withdraw money for uncontrolled turnover through the one-day companies. The lawyers contested the decision of the tax authorities, worked out a legal position that allowed calculating and documenting the Client's actual expenses related to the purchase of goods, and successfully initiated an independent expert evaluation of the market value of transportation expenses included in the surcharge on goods from the transit counterparty.

    • Result

      The amount of charges was reduced by 520 million rubles, or 85% of tax claims. Lawyers formed the law enforcement practice under Article 54.1 of the Tax Code of the Russian Federation in terms of real tax liabilities ("reconstruction of VAT and income tax").

  • Construction Successfully
    Support of tax audits

    The client was provided with services to appeal the results of the field tax audit and preparation of documentary evidence to confirm the reality of work performed by subcontractors.

    • Purpose

      Elimination of tax risks of understatement of the tax base for VAT and income tax

    • Employees involved

      Mikhail Begunov, Yulia Pavlova

    • Process description

      An on-site tax audit is being conducted in respect of the client, the tax authority does not confirm the performance of construction and installation works by subcontractors, since the actual performers of the works have not been identified. In the frame of legal defense and support of tax control measures we rendered services on search of factual executors of works according to materials, provided by tax authorities within the frame of on site tax audit. The procedure of tax reconstruction in view of the submitted primary documents on the actual executors of works, which were involved by the disputed subcontractors, was carried out. An information letter was sent to the tax authority in order to confirm that the client is ready to pay the tax arrears, taking into account the recalculation of the amount of unjustified tax savings before the delivery of the decision on the audit.

    • Result

      Implementation of the project allowed to reduce the amount of income tax and VAT arrears

  • Retail Successfully
    Support of tax audits

    Support of tax control measures to confirm the reality of providing services by contractors

    The client was provided with services to support an on-site tax audit and development of a legal position to confirm the costs of logistics services of unfair counterparties.

    • Purpose

      Elimination of tax risks of understatement of the tax base for VAT and income tax

    • Employees involved

      Mikhail Begunov, Yulia Pavlova

    • Process description

      A large distribution company sought legal assistance to develop a legal position justifying the involvement of disputed logistics companies. The tax authority disputed the reality of providing logistics services because the goods were not stored in the warehouses stated in the primary documents with the counterparties, including the tax authority found the controllability of the involved logistics companies and the lack of sufficient manpower to provide services to the client. As a part of audit support services were rendered for preparation of answers to demands of tax authorities for clarification and documentation of actual goods movement through warehouses of separate subdivisions of the company and further transfer of goods both to logistics companies and ultimate purchasers of the client. Services were rendered to strengthen the legal position, including preparation and accompaniment of client's representatives for questioning by the tax authorities. Prepared legal position with documentary evidence of availability of material resources from counterparties to provide logistics services to the client.

    • Result

      According to the results of consideration of the explanations and documents provided by the client on the actual order of execution of obligations by the disputed counterparties, it was possible to prove that the transactions concluded were not aimed at obtaining unjustified tax savings.

  • Construction 338 mln ₽
    Support of tax audits

    Advising a construction company on interaction with the tax authority during an on-site tax audit

    • Employees involved

      Alexey Stanchin, Alexander Dmitriev

    • Process description

      A taxpayer turned to the Tax Compliance team as part of a consultation on minimizing tax risks. In particular, work was done on: (1) advising the client on the correctness of tax accounting (2) advising on the field tax audit; (3) interaction with the tax authority during the tax audit; (4) justification before the tax authority of the principles of accounting policy applied by the taxpayer. In connection with the above, the taxpayer was offered an action plan for interaction with the tax authority. The Tax Compliance team helped the client to develop a legal position confirming: (1) the reality of transactions; (2) the validity of the absence of additional income tax charges; (3) justify the need for additional VAT charges on tax "gaps".

    • Result

      The tax authority accepted the taxpayer's arguments. The tax claim of 385 million ₽ was reduced to 46 million ₽ as a result of the project. Which is 12% of the original claim of the tax authority.

  • energy Successfully
    Support of tax audits

    Support of the client in the field tax audit and pre-trial appeal on the validity of the application of the reduced tax rate at source

    The dispute with the tax authority regarding the legality of the application of a reduced tax rate at source is resolved

    • Employee involved

      Nikita Zharov

    • Process description

      A company applied a reduced withholding tax rate in relation to dividends distributed to a foreign shareholder. The tax authority, as part of an on-site tax audit, investigated the circumstances of the foreign organization's activities and the legitimacy of the application of the preferential provisions of the IRS. As a result of the audit, the tax authority concluded that the standard rate of 15 percent was to be applied to dividends.

    • Result

      The team helped the client to successfully pass an on-site tax audit, in particular assisted in preparation of answers to tax authorities' requirements, accompanied the client during interrogations of employees and other control measures, provided methodological support to the client on arising issues. Subsequently, the team helped to form a legal position that was used by the client during the pre-trial and trial stages. As a result, the dispute with the tax authorities was successfully resolved in favor of the client in court