Restructuring of a large pharmaceutical group of companies
The client asked to analyze the current structure of the group of companies and identify key tax risks. Based on the results of this analysis, a decision was made to change the structure of the group of companies. The specialist prepared a target structure and a detailed transition plan. (The project was implemented by the employee before joining Tax Compliance)
The client received the most efficient and manageable group structure, free of historical tax risks and with a number of tax advantages.
Analysis of tax risks associated with the possible qualification of the nature of the Group's business (federal pharmacy chain) as a "split" business scheme
The team had the task to analyze the nature of the Group's activities for the risks of imputing the scheme of "splitting" the business. The team analyzed: (1) circumstances of business entities within the Group in terms of meeting the conditions for the application of special tax regimes; (2) circumstances of creation of certain business entities; (3) specifics of business relationships within the Group.
Based on the results of the analysis, the risks of qualifying the nature of the Group's activities as a "split" business scheme were identified and recommendations for changing the structure of business relationships within the Group were developed.
Mikhail Begunov, Nikita Zharov
Supporting the client (international pharmaceutical manufacturer) in the pre-testing analysis on the interaction with the "technical" organization
As part of the pre-inspection analysis, the tax authority concluded that the taxpayer had accounted for tax purposes for business transactions with a "technical" company. In view of the above, the taxpayer was invited to conduct an independent analysis of tax risks and (if necessary) to adjust its tax liabilities. The team analyzed business transactions with the disputed counterparty for tax risks and subsequently helped the client to prepare a response to the request of the tax authorities and collect the evidence, confirming: (1) the reality of business transactions with the disputed counterparty, (2) the reality of the obligations under transactions directly claimed by the counterparty, (3) the counterparty has no attributes of "technical" company for tax purposes.
The tax authority accepted the arguments of the taxpayer, and decided not to conduct an on-site tax audit against him.
Development of the legal position of a major drug manufacturer and representation in the pre-inspection analysis conducted by the tax authority
The company was approached by a client who received a request to provide documents and information for the last three years of activity outside the scope of the audit. In the opinion of the tax authority, a number of counterparties could not confirm the reality of the fulfillment of obligations under the transaction and the client had the intent to minimize the tax base when reflecting transactions in the accounting and tax registers.
TC attorneys formed a legal position in the explanations and prepared together with the client a comprehensive package of documents confirming the reality of transactions with counterparties. The attorneys interviewed the general directors of the counterparties and ensured their appearance at the tax authority to confirm their earlier testimony.
Alexander Dmitriev, Yulia Pavlova
Preparation of a legal position confirming the reality of delivery of goods by the counterparty involved
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.
Judicial protection of the interests of a major pharmaceutical company in challenging the claims of transactions with "unfair" counterparties
According to the results of the second field tax audit in connection with the violation of the rules of Art. 54.1 of the Tax Code, the company was charged a significant amount of additional taxes and penalties in terms of transactions for the supply of raw materials concluded with several counterparties. During the trial, the court was presented with evidence of the uniqueness of the raw materials purchased from the disputed counterparties and their actual use in production, the circumstances of the conclusion and execution of transactions by the disputed counterparties, as well as the availability of material and labor resources in sufficient volume.
The legal position developed by our specialists made it possible to appeal against additional tax charges of 117 million rubles on several counterparties. The court decision to invalidate the results of the field tax audit in this part was upheld in courts of appellate and cassation instances. The client was able to use the position developed to challenge the actions of the tax authority in the framework of field audits for other tax periods in respect of the same counterparties.
Mikhail Begunov, Denis Kozhevnikov
Withdrawn claims of the tax authority against suppliers of raw materials for medicines
At the stage of objections and additional activities it was proved that it is necessary to measure quantitative indicators at the beginning and at the end of the production process. The tax authority has been provided with calculations on writing-off materials purchased from contested counterparties and information on raw material remainders.
Claims of the tax authority for income tax were partially withdrawn. The taxpayer's objections were partially satisfied in the amount of 343 million ₽. Positive practice of pre-trial appeal against acts of tax authorities in relation to manufacturers of medicines was formed taking into consideration the specifics of the industry.