Tax Audit

Tax Compliance attorneys advised a petroleum products company on the tax risks of calculating and paying excise tax on petroleum products over a three-year period.

• Process description

  The Client was under the threat of a field tax audit and additional tax charges if the company did not voluntarily submit revised excise tax returns and did not pay the tax and penalties. The lawyers evaluated the materials of tax authorities, available judicial practice, and clarifications of the Ministry of Finance and Federal Tax Service. As the result our lawyers reasoned to the Client that voluntary tax payment is more efficient for the Client than an on-site tax audit and further litigation in courts, including the fact that the amount of taxes to be paid voluntarily would be considerably smaller. Tax Compliance attorneys developed a new approach to the application of the letter of the Ministry of Finance and prepared a legal position to substantiate the advisability of independent calculation of tax liabilities of the Client on excise taxes and their voluntary payment to the budget, due to changes in the approach of the Russian Federal Tax Service in terms of charging excise taxes when mixing oil products, as well as the current negative judicial practice on this topic.

• Result

  The client prepared a refined tax return and completed the tax calculations. We managed to avoid penalties and fines of more than 190 million rubles.

• Process description

  This project examined the tax risks associated with raising loans from Russian banks and the subsequent financing of companies within the group with these funds. In particular, a whole pool of risks related to accounting for tax purposes of specific bank commissions (payments for opening a "credit line", etc.), potential reclassification of transactions and others was analyzed. (The project was implemented by an employee before joining Tax Compliance)

• Result

  The client received a detailed explanation of the tax consequences, risks and ways to minimize them.

• Process description

  Within the framework of this project, a construction company was interested in the tax qualification of an agreement providing for a construction company to demolish social infrastructure facilities with the subsequent construction of new facilities and their transfer to the owner instead of the demolished facilities. In particular, the Client was interested in a wide range of profit tax and VAT issues, including the tax qualification of the transaction as reimbursable (barter) or gratuitous, potential tax risks and other. (The project was implemented by an employee before joining Tax Compliance)

• Result

  As a result of the study, the client received a clear map of tax consequences, a description of tax risks and ways to minimize them.

• Process description

  The client planned to enter into a license agreement between the U.S. parent company and a Russian subsidiary for an expensive ERP system. A large "security dossier" was prepared for this agreement in order to present it to the tax authorities during an audit. The consultant was given the task of assessing the key tax risks related to the above transaction, as well as to research the weaknesses of the security dossier and formulate recommendations on strengthening the client's position. (The project was implemented by the employee before joining Tax Compliance)

• Result

  The client received an assessment of tax risks and recommendations for their minimization, as well as clear proposals for changing the contractual structure.

The company incorrectly calculated and paid SIF contributions for three years

• Purpose

  Return overpaid insurance premiums

• Employee involved

  Anna Karpova

• Process description

  The company incorrectly calculated and paid Social Insurance Fund contributions for three years. The company's specialists audited personnel documents, as well as all tax returns and payments to the funds.

• Result

  Tax Compliance specialists conducted a tax and personnel audit, restored personnel documents for three years and prepared revised tax returns. As a result, more than 30 million rubles of overpaid insurance premiums were returned from the budget.