Preparation of a legal position confirming the reality of freight forwarding services
The tax authority in the framework of an on-site tax audit came to the conclusion that the taxpayer used technical links for the purposes of obtaining tax profits on VAT and income tax. In particular, the tax authority believed that: (1) in fact the provision of services took place directly from organizations that apply special tax regimes (without VAT); (2) the taxpayer and the counterparty are related business entities. In view of the above, the taxpayer was invited to dispute the technical nature of the disputed counterparties. The Tax Compliance team helped the client to elaborate a legal position which confirmed: (1) lack of controllability between the participants of the contractual relations chain; (2) economic feasibility of the transaction; (3) the reality of financial and economic activities of the disputed counterparties.
The tax authority accepted the arguments of the taxpayer
Advising the client on personal income taxation of individuals working outside the Russian Federation
Mikhail Begunov, Ivan Tsvetkov, Nikita Zharov
The Tax Compliance team was given the task of analyzing the tax risks associated with the procedure for taxing the income of individuals working outside of Russia.
The Tax Compliance team has identified the areas most exposed to tax risks and prepared recommendations for improving document management (in terms of processing the client's labor relations with employees working outside of Russia) based on the results of the analysis.
Optimization of tax risks associated with aircraft charter operations for one of the largest companies in Russia
The client requested to analyze the current structure of interaction within the framework of aircraft charter contracts. The consultant was assigned the task to analyze tax risks and identify ways to minimize them. (The project was implemented by the employee before joining Tax Compliance)
As a result of the work done by the consultant was able to change the contractual structure, which allowed to minimize the risks of the client associated with the application of 0% VAT rate and others.
Preparation of a legal position confirming the reality of freight forwarding services in conjunction with the reconstruction of a number of episodes
Confirm the actual provision of transport and freight forwarding services rendered to the client, to apply the reconstruction of transportation services, to confirm the absence of a scheme to obtain an unjustified tax benefit
An on-site inspection was carried out in respect of the client, as a result of which additional VAT and income tax were charged on relations with controlled transit counterparties. According to the tax authority, the purchase of goods was actually carried out directly from organizations that apply special tax regimes (without VAT). As part of the legal defense developed a legal position to challenge the technical nature of the activities of the disputed counterparties, for part of the episodes was applied to the reconstruction of the income tax.
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.
Structuring of tax risks and minimization of possible tax claims
A client engaged in helicopter transportation rendered consulting services for the analysis of tax risks in a transaction involving the sale of interest-bearing bonds, which resulted in a loss. Due to the fact that the securities are not traded on the organized securities market and were sold to a related party, there was a risk of additional profit tax charges when accounting for expenses on the purchase of securities.
Implementation of the project made it possible to eliminate the probability of tax claims
Analysis of tax risks in debt restructuring
Exclusion of tax claims from the tax authorities, structuring the transaction according to the model of issuing preferred shares by the company and the possibility of applying Article 277 of the Tax Code when offsetting obligations.
A client of a major airline company was advised on analyzing tax risks associated with the purchase of discounted debt from credit institutions and the offsetting of debt obligations against securities.
Legal position aimed at justification and structuring of the transaction allowed the client to exclude the possibility of tax claims on income tax, as well as to take into account the losses of previous tax periods in the expenses.
Challenged the position of the tax authority on the audit of transfer pricing
Price adjustment would have entailed an additional charge of income tax on the formed tax base based on the market prices of the transaction. The project developed a legal position indicating that the formed pricing corresponds to the market level, because the calculation of the cost of the taxpayer's goods contains production costs, economically justified in terms of the type of activity.
As a result of the successful legal defense, additional tax assessments in the amount of 280 million ₽ were avoided.