Cases

The client provided services to appeal against the results of a field tax audit, the basis for the collection of taxes was the assumption of the tax authority of the fictitious nature of the transaction to increase the price of goods

• Purpose

  Confirm the actual movement of goods from importer to customer, confirm the absence of a scheme to obtain an unjustified tax benefit

• Employee involved

  Mikhail Begunov

• Process description

  An on-site audit was carried out in relation to a client, as a result of which additional VAT and profits tax were charged on relations with a controlled transit counterparty. According to the tax authority, the actual purchase of goods was carried out directly from a foreign supplier. As part of the legal defense, a legal position has been developed to calculate and document the actual expenses of the Company on the acquisition of goods based on the price set by the foreign counterparty, as well as costs associated with the transportation of goods. Due to the absence of primary documents, the Company initiated an independent expert assessment of the market value of transportation and other direct expenses included in the markup of goods from the disputed counterparties.

• Result

  According to the results of the developed legal position it was possible to prove the lack of controllability between the participants in the chain of contractual relations, to confirm the economic feasibility of the transaction, as well as the reality of the financial and economic activities of the disputed counterparties.

Settled a dispute with the tax authority on the legality of accounting exchange rate differences for income tax purposes

• Employees involved

  Mikhail Begunov, Nikita Zharov

• Process description

  The Company was accounting for profit taxation purposes for income/expenses in the form of exchange rate differences. Based on the results of the on-site tax audit, the tax authority concluded that the Company's expenses in the form of exchange rate differences do not meet the criterion of documentary support and should not be taken into account for profit taxation purposes

• Result

  The Tax Compliance team has prepared an appeal to the superior tax authority (Department of the Federal Tax Service of the subject), in which it: (1) presented evidence of sufficient documentary support of the respective expenses; (2) pointed out the methodological errors committed by the auditors in calculating the additional tax charges. Upon consideration of the appeal, the superior tax authority upheld the Company's position in full.

The client sought advice on the preparation of objections to the protocol of the commission on the legalization of the tax base. Based on the results of the pre-inspection analysis, the tax authority found the subcontractors involved to be controlled, as well as risks indicating that the counterparty did not have the resources to perform the work.

• Purpose

  Elimination of tax risks of understatement of the tax base for VAT and income tax

• Employee involved

  Yulia Pavlova

• Process description

  Tax control measures were carried out in relation to the client, the tax authority indicates the need to clarify the tax liabilities of the client on the subcontractor. According to the tax authority, the contractor involved could not perform work for the client. As part of the legal defense and preparation of a response to the protocol of the commission was able to prove the lack of involvement of the client in the regulation of the disputed counterparty, to confirm the economic feasibility of engaging a controversial counterparty.

• Result

  The implementation of the project allowed to save the client's current assets, exclude the possibility of the appointment of a field tax audit.

• Process description

  At the end of 2016 the Moscow authorities decided to revise the value of a number of key facilities and to make its application retroactive. The Company did not agree to pay corporate property tax for 2016 based on the recalculated value, which led to a dispute with the tax authority. (The project was implemented by an employee before joining Tax Compliance)

• Result

  As a result of developing the right strategy, based on the position of the Supreme Court of the Russian Federation in the case of Yumaks, we were able to convince the court of the legitimacy of the client's claims.

• Process description

  In this project the client was given the task to develop a marketing policy, the inventory of existing marketing activities and development of optimal ways of tax accounting of these activities. The project concerned interaction with bloggers and celebrities, bonus payments, outdoor advertising and advertising in shopping malls, commercial product testing, etc. (The project was implemented by an employee before joining Tax Compliance)

• Result

  Marketing policy was developed for the client, taking into account the recommendations to optimize tax risks. The client also received a detailed description of the tax consequences and accounting methods of the relevant transactions.