Advising a major U.S. corporation on tax risks associated with an intragroup license agreement for an ERP system
The client planned to enter into a license agreement between the U.S. parent company and a Russian subsidiary for an expensive ERP system. A large "security dossier" was prepared for this agreement in order to present it to the tax authorities during an audit. The consultant was given the task of assessing the key tax risks related to the above transaction, as well as to research the weaknesses of the security dossier and formulate recommendations on strengthening the client's position. (The project was implemented by the employee before joining Tax Compliance)
The client received an assessment of tax risks and recommendations for their minimization, as well as clear proposals for changing the contractual structure.
Representing a major oil producer in court to reclaim an invoice
The client's counterparty refused to issue an invoice for the work performed on a major construction project. This position of the defendant was due to the fact that the parties had different approaches to determining the final cost of the work. The dispute was also complicated by the existence of conflicting practices regarding the possibility of such claims. (Project implemented by employee prior to joining Tax Compliance)
Through an elaborate strategy, the court agreed that the company's invoicing requirements of the counterparty should be satisfied.
Supporting a dispute over the exclusion of production buildings of one of Russia's largest generating companies from the list of immovable property for which the tax base is determined as the cadastral value
A number of buildings of the energy company were used for purposes related to production activities, both directly and indirectly, in particular to accommodate personnel, etc. These buildings were included in the list as a result of a survey of their actual use by the regional authorities, as well as taking into account the permitted use of the land plot. (Project implemented by an employee prior to joining Tax Compliance)
In this dispute, we were able to convince the court to exclude all buildings from the list, allowing the client to achieve substantial tax savings.
Advising a major client on the peculiarities of becoming a resident of the Free Port of Vladivostok
The client planned to create a legal entity and make investments in the free port of Vladivostok. After the project was implemented, the legal entity to be created was to provide hotel services. The client contacted a consultant to analyze his investment project for compliance with the requirements for SPV residents. (Project implemented by employee before joining Tax Compliance)
As a result of the analysis, the client received a clear understanding of the main tax incentives for SPV and related requirements, as well as received clarifications regarding his investment project
Assisting the client in preparing a legal position on the "splitting" of the business
Mikhail Begunov, Nikita Zharov, Ivan Tsvetkov
The tax authority, as part of its pre-inspection analysis, concluded that the taxpayer used a "split" business scheme. In particular, the tax authority believed that: (1) the inclusion of a retailer who applied the simplified taxation system ("Counterparty") in the chain "producer - end buyer" is due solely to tax motives; (2) the taxpayer and the counterparty are interdependent business entities. In view of the above, the taxpayer was requested to adjust its tax liabilities and submit revised tax returns. The Tax Compliance team helped the client to elaborate a legal position confirming that (1) business transactions with the Counterparty are real; (2) business transactions with the Counterparty have a business purpose; (3) no interdependence exists between the taxpayer and the Counterparty.
The tax authority accepted the arguments of the taxpayer.