Cases

The tax authority decided not to conduct an on-site tax audit of the taxpayer

• Employees involved

  Mikhail Begunov, Nikita Zharov

• Process description

  The tax authority, as part of its pre-inspection analysis, concluded that the taxpayer had accounted for tax purposes for business transactions with "technical" companies. In view of the above, the taxpayer was offered to adjust its tax liabilities by more than 17 million rubles. The Tax Compliance team helped the client to elaborate a legal position that confirmed: (1) the reality of business transactions with the disputed counterparties; (2) the client's "commercial" discretion before entering into relations with the disputed counterparties; (3) the reality of obligations fulfillment under transactions directly by the declared counterparties.

• Result

  The tax authority accepted the arguments of the taxpayer, and decided not to conduct an on-site tax audit against him.

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

• 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.

Increased efficiency of internal control system for the client's selection and interaction with counterparties

• Employees involved

  Mikhail Begunov, Nikita Zharov

• Process description

  The Tax Compliance team was tasked to analyze the client's internal control system for the risks of entering into/interacting with "technical" companies. The project analyzed: (1) internal documents of the client; (2) the client's approach to audit activities in relation to potential / existing counterparties; (3) the functionality of the client's responsible employees.

• Result

  The Tax Compliance team identified ineffective areas of the internal control system and prepared recommendations aimed at reducing the risks of entering into business relationships/interactions with "technical" companies.

Tax Compliance team carried out a health-check of client's business activities for the presence of tax risks

• Employees involved

  Mikhail Begunov, Nikita Zharov

• Process description

  The Tax Compliance team had the task to perform an express analysis of the client's business activities to check the presence of tax risks. The project successfully applied the model of "risk-oriented" approach that implies checking the areas of the Company's business activities most exposed to tax risks (income tax and VAT).

• Result

  Based on the results of the analysis, the Tax Compliance team has identified certain business transactions that are the most associated with tax risks and developed a set of measures aimed at reducing them.