Advising on the application of tax legislation

A client from a fuel company applied for an installment payment of taxes due to the lack of financial capacity to pay taxes in full at the request of the tax authority.

• Purpose

  Verification of the grounds for the client's tax deferral

• Employee involved

  Yulia Pavlova

• Process description

  The client was provided with services for the preparation of documentary substantiation of compliance with all the criteria for obtaining installment payments, calculated financial indicators of solvency and current liquidity to obtain installment payments due to the threat of bankruptcy risks. An analysis of the most rational way to ensure tax liabilities, depending on the value of the company's assets and, in general, the procedure for obtaining one or another type of security. Prepared documents in respect of the property of the company, acting as security for the performance of obligations to pay taxes within the period specified in the schedule of debt repayment.

• Result

  The tax authority accepted the documents and the application for installment payment, the client was given the opportunity to pay tax during the calendar year.

A transportation company sought advice on assessing tax risks in a transaction involving the sale of interest-bearing bonds.

• Purpose

  Structuring of tax risks and minimization of possible tax claims

• Employee involved

  Mikhail Begunov

• Process description

  A client engaged in helicopter transportation rendered consulting services for the analysis of tax risks in a transaction involving the sale of interest-bearing bonds, which resulted in a loss. Due to the fact that the securities are not traded on the organized securities market and were sold to a related party, there was a risk of additional profit tax charges when accounting for expenses on the purchase of securities.

• Result

  Implementation of the project made it possible to eliminate the probability of tax claims

The airline sought advice on the assessment of tax risks in the restructuring of debt on purchased discounted borrowings.

• Purpose

  Exclusion of tax claims from the tax authorities, structuring the transaction according to the model of issuing preferred shares by the company and the possibility of applying Article 277 of the Tax Code when offsetting obligations.

• Employee involved

  Mikhail Begunov

• Process description

  A client of a major airline company was advised on analyzing tax risks associated with the purchase of discounted debt from credit institutions and the offsetting of debt obligations against securities.

• Result

  Legal position aimed at justification and structuring of the transaction allowed the client to exclude the possibility of tax claims on income tax, as well as to take into account the losses of previous tax periods in the expenses.

• Employees involved

  Mikhail Begunov, Ivan Tsvetkov, Nikita Zharov

• Process description

  The Tax Compliance team was given the task of analyzing the tax risks associated with the procedure for taxing the income of individuals working outside of Russia.

• Result

  The Tax Compliance team has identified the areas most exposed to tax risks and prepared recommendations for improving document management (in terms of processing the client's labor relations with employees working outside of Russia) based on the results of the analysis.

A fuel company sought advice on the legality of payment of excise taxes and penalties, respectively, in connection with a radical change in the approach to the interpretation of the provisions of the Tax Code by the Ministry of Finance of Russia.

• Purpose

  Advising on the legality of the calculation of excise taxes on petroleum products in connection with the change in the approach to the interpretation of the provisions of the Tax Code of the Ministry of Finance of Russia.

• Employee involved

  Yulia Pavlova

• Process description

  The client in the conditions of the oil depot, is engaged in improving the quality of fuel. Since the client did not produce a new product, no excise tax was calculated on the product received. In 2020 the Ministry of Finance of Russia changed its position, on which a number of clarifications were issued, on the basis of which the tax authority sent the client an information letter with the proposal to clarify its tax liabilities for the past tax periods. The client requested advice on the lawfulness of calculating excise duties on petroleum products due to a change in the approach to the interpretation of provisions of the Tax Code by the Russian Ministry of Finance.

• Result

  The client developed a legal position to challenge the actions of the tax authority on the procedure for determining the object of taxation