Cases

Confirmation of the economic feasibility of borrowing funds from a related company in order to avoid reclassification of the transaction as payment of "hidden" dividends.

Mikhail Begunov

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.

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.

Confirm the actual movement of goods from the importer to the customer, to confirm the absence of tax benefits in the form of overvaluation of goods.

Mikhail Begunov, Yulia Pavlova

As part of the on-site tax audit, the tax authority assumed the deliberate involvement of dubious counterparties in the chain of financial relationships to artificially increase the price from the importer. The developed legal position made it possible to prove that the involved counterparty imported goods in the declared volumes, which is confirmed by the information reflected in the customs declarations. Primary documents confirming the availability of goods in the client's warehouses during the audited period, as well as counterparties' expenses for the delivery of goods to the client were presented.

As a result of successful appeal we managed to reduce the amount of additional tax charges to 83 million rubles. It was important for the client's business to challenge the additional charges based on the results of the field tax audit, as their size is substantial and in case of non-payment there is a risk of bringing the CEO of the organization to criminal liability.

Confirmation of the actual size of the client's tax liabilities due to the tax reconstruction procedure.

Mikhail Begunov, Yulia Pavlova

According to the results of an on-site tax audit, the tax authority points to the creation of a fictitious document flow with subcontractors engaged in order to acquire, in fact, goods (building materials), while overstating the cost of construction and VAT deductions. The amount of tax arrears is calculated from the full amount of the transaction on financial and economic relations with the disputed counterparties. As a part of support of additional tax control measures we rendered services on preparation of legal position for tax reconstruction in order to calculate the actual tax liabilities of the client. The primary documents confirming the client's expenses on purchase of materials used in construction of the facilities were submitted to apply the computational method of tax liabilities determination.

As a result of successfully developed legal position at the stage of support of additional measures of tax control it was possible to reduce the amount of additional tax charges in the amount of not less than 3 billion rubles.

Confirmation of the actual size of the client's tax liabilities due to the tax reconstruction procedure

Mikhail Begunov

A tax audit was carried out in relation to the client, the basis for the collection of taxes was the assumption of the tax authority of the fictitious nature of the supply of raw materials for some suppliers. It was proved at the stage of objections and additional measures of tax control that it is necessary to measure quantitative indicators at the beginning and at the end of the production process. The tax authority was given the calculations for write-offs of the materials purchased from the disputed contractors and the information about the residuals of raw materials. The tax authority's claims have been partly withdrawn in relation to profits tax. The taxpayer's objections were partially satisfied in the amount of 343 mln rubles. Within the framework of the appeal to the superior body the client's claims on recalculation of tax liabilities were partially satisfied.

A positive practice of pre-trial appealing the acts of tax authorities in respect of manufacturers of medicines is formed, taking into account the specifics of the industry. The importance of the project is to provide legal assistance to the manufacturer of vital and socially important drugs.

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

Mikhail Begunov, Yulia Pavlova

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.

Implementation of the project allowed to reduce the amount of income tax and VAT arrears