Cases

Cases

  • Construction More than 50 millions ₽
    Tax reserves

    Supporting the client (owner of one of the largest shopping malls in Moscow) in challenging the cadastral value of the property

    The tax provision for corporate property tax was identified and the process of reducing the cadastral value of the property was passed

    • Employee involved

      Nikita Zharov

    • Process description

      The client was interested in finding tax reserves for corporate property tax. The team identified an opportunity to reduce the cadastral value of the property, helped collect the necessary evidentiary basis and accompanied the legal process of contestation.

    • Result

      As a result of the lawsuit, the cadastral value of the property was reduced by more than 25 percent. The tax savings for the client amounted to more than 50 million rubles.

  • Construction 39 million ₽
    Pre-court settlement of tax disputes

    Preparation of a legal position confirming the reality of engaging subcontractors

    The client was rendered services to draw up an objection to the act of a tax audit, additional materials of tax control, the basis for the collection of taxes was the assumption of the tax authority that the organization has not carried out construction work on the site.

    • Purpose

      Confirm the actual performance of works by subcontractors for the construction of the Moscow-St. Petersburg Expressway, confirming the absence of a scheme to obtain an unjustified tax benefit

    • Employee involved

      Alexey Stanchin

    • Process description

      An on-site audit was carried out in respect of the client, as a result of which additional VAT was charged on the counterparty. According to the tax authority, in fact the specified work was not performed by the disputed counterparty, but was performed by the taxpayer itself or other organizations. In the legal defense developed a legal position, which proved that the performers were part of the same group of companies, consisting of more than 12 legal entities. The taxpayer, when working with the counterparty considered it as a single economic entity and could not know about the corporate structure of the counterparty.

    • Result

      According to the results of the developed legal position it was possible to confirm the economic feasibility of the transaction, as well as the reality of the financial and economic activities of the disputed counterparties.

  • IT 1.94 billion ₽
    Court settlement of tax disputes

    Represented an IT company, a subsidiary of the largest telecom operator and IT solutions developer of the Southern and North Caucasus Federal Districts, in a dispute with the tax inspectorate.

    This is the first example of a tax dispute in favor of the taxpayer to confirm the reality of transactions with counterparties in the framework of traffic services.

    • Process description

      The client appealed to the arbitration court with a claim to the tax authority to invalidate the decision made on the basis of the field tax audit. The basis for the accrual of additional taxes, penalties and fines served as the basis for the conclusions of the tax authority that the Client received an unjustified tax benefit in the relationship with several counterparties, which, as telecommunications operators, could not provide services for traffic transit in connection with the fact that they had signs of organizations that do not perform real financial and economic activities. The main difficulty in proving the case is that the "traffic service" has no clear material expression and is not subject to visualization, therefore it was very difficult to collect the evidence base confirming the reality of transmitting traffic. During the court hearing Tax Compliance lawyers managed to have technical expertise assigned to the case and attach the expert's conclusion to it. As the result of legal efforts and well-designed defense strategy the court of the first instance partially ruled in favor of the Client. In this case the court saw an opportunity to interpret the concept of "due diligence" in favor of telecom companies. It pointed out that, given the specifics of the traffic services provided, as well as the peculiarities of the communications equipment through which the services are provided, the process of checking the availability of the counterparties' communications equipment, as well as the setting up of the connection was carried out remotely. This approach (if supported by higher courts) may be used by other recipients of similar services (in particular, telecommunications companies), both at the stage of selecting counterparties and when defending against claims of tax authorities.

    • Result

      Tax Compliance team managed to defend about 50% of the additional tax charge (in the part of corporate income tax the Client's claims were recognized as legitimate). This dispute is unique and forms positive arbitration practice for the entire telecommunications industry.

  • IT More than 500 million rubles. ₽
    Tax support for IT-business

    Supporting the client in the pre-inspection analysis

    Settled a dispute with the tax authority regarding the economic feasibility of expenses in the form of agency fees

    • Employee involved

      Nikita Zharov

    • Process description

      The Company purchased agency services aimed at attracting new clients. The tax authority concluded in its pre-inspection analysis that the Company's expenses for the acquisition of the above services were economically unjustified and should not be taken into account for profit taxation purposes.

    • Result

      The team prepared a legal position substantiating the economic necessity of engaging agents and represented the client in meetings with the tax authority. As a result of the pre-inspection analysis, the tax authority accepted a significant part of the Company's arguments.

  • Retail 533 millions ₽
    Support of tax audits

    Tax Compliance attorneys represented a company engaged in the wholesale trade of household goods, hardware and tools

    Based on the data of pre-inspection analysis, the tax authority opened an on-site tax audit and filed tax claims against the Client's company in the amount of 600 million rubles. The claims were related to the lack of fulfillment of obligations by counterparties with risks of nominal structures.

    • Process description

      During the pre-trial stage of the dispute with the tax authorities, the lawyers proved the reality of intermediary companies: provided documentary evidence of the possibility of the counterparties to fulfill their supply obligations and the availability of appropriate material and human resources, confirmed the scheme of goods movement and transportation, collected explanations from the counterparties' employees. The lawyers contested the conclusions of the tax authorities that there was intent in the actions of the client in purchasing products from intermediaries solely for the purpose of obtaining illegal tax savings. This case resulted in additional positive pre-trial practice of challenging the decisions of the tax authorities, where there is no established scheme of withdrawal of funds for the benefit of the inspected company by minimizing the tax burden.

    • Result

      The lawyers successfully challenged the act of the tax audit and reduced the tax to accrual of 10 times.