Support of tax audits

Support of tax audits

  • 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

    • Industry

      energy

    • 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

    • Employee involved

      Nikita Zharov

  • 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.

    • Industry

      Construction

    • 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

    • Employees involved

      Mikhail Begunov, Yulia Pavlova

  • Successfully
    Support of tax audits

    Preparation of a legal position to confirm the reality of the relationship with subcontractors

    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.

    • Industry

      Construction

    • 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

    • Employees involved

      Mikhail Begunov, Yulia Pavlova

  • Successfully
    Support of tax audits

    Elimination of risks of reclassification of transaction with interdependent company-lender.

    The client received services to support tax control measures to verify the legality of the reflection of interest on loans received from an interdependent company with a foreign interest in the expenses and to verify compliance with currency legislation

    • Industry

      Retail

    • Process description

      As part of the ongoing activities, the tax authority planned to schedule an audit and recognize the transaction as an actual payment of dividends to the ultimate beneficiaries and recognition of interest on loans subject to capitalization and controlled indebtedness. As part of the legal assistance provided to the tax authority, documents and clarifications were prepared to confirm the actual purpose and direction of the use of borrowed funds.

    • Result

      According to the results of consideration of materials, it was possible to prove that the transaction to attract the loan funds is not aimed at misrepresenting the facts of financial and economic activity and does not imply an intent to increase the cost of the client and receive an unjustified tax benefit for income tax.

    • Employee involved

      Mikhail Begunov

  • 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.

    • Industry

      Retail

    • 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.

    • Employees involved

      Mikhail Begunov, Yulia Pavlova