Tax support of transactions

The client required advice on a wide range of tax issues, including taxation of IT exit, IT financing using various instruments, distribution of profits, sale of assets, etc. The consulting was carried out at all stages, including the process of IT creation and operation. The work on this project was complicated by the specifics of IT taxation and included analysis of a significant volume of various transactions, including barter transactions, loans, assignment of rights of claim and transfer of debts, as well as other ones. (The project was implemented by an employee before joining Tax Compliance)

The client received ready-made solutions on the issues of interest and a map of tax consequences of IT activities. Tax consulting on this project was complicated by the presence of many unresolved issues of IT taxation in Russia, for each of which the client was able to provide effective solutions.

Mikhail Begunov, Nikita Zharov

The client planned to restructure intragroup indebtedness totalling more than RUB 42bn. The transaction was complicated by tax risks, as well as restrictions imposed by currency and sanctions regulations.

The Tax Compliance team analysed currency and tax legislation as well as their application, including issues related to repatriation of funds under loan agreements, tax consequences of assignment of rights, transfer of debt, thin capitalisation rules for leasing companies and application of provisions of double taxation avoidance agreements.

As a result of the project, Tax Compliance team managed to offer the client a way of carrying out a business transaction which would meet the requirements of currency legislation as well as be the least exposed to the risks of tax legislation violation (including debt transfer between the Group companies / forgiveness of debt in the framework of economic relations between the "parent" - "subsidiary" companies).

In addition, the Tax Compliance team was able to identify areas of tax efficiency improvement in relation to the proposed transaction, in particular, it proposed a method of transaction that allowed avoiding tax payments under thin capitalisation rules.