Transport and Logistics, IT business, Real Estate and Construction, Pharmaceuticals, Energy, Manufacturing
Nikita graduated with a BA and MA from Lomonosov Moscow State University with a law degree, as well as a professional retraining program in accounting for commercial organizations at the Higher School of Economics. Completed a refresher course in international taxation at Tedo Academy (ex - PwC)
Before joining Tax Compliance, Nikita worked for BIG-4 companies. He has more than 5 years of professional experience in the legal field of taxation.
Nikita specializes in analysis and management of tax risks, support of companies in pre-inspection analysis and tax audits, representation of clients in pre-trial and judicial settlement of disputes with tax authorities.
Most of the projects implemented with the participation of Nikita:
- analysis of tax risks associated with the client's participation in the intra-group financing system (cash pooling)
- assisting the client in the pre-inspection analysis on the issue of the legality of expense accounting / application of VAT deductions on transactions with the "technical" companies
- assisting the client in the tax audit and pre-trial settlement of the dispute with the tax authority on the issue of application of reduced withholding tax rate on dividends paid to the foreign shareholder (Republic of Cyprus)
- assisting the client in a tax audit on the issue of the correctness of expense accounting/application of VAT deductions on transactions with technical companies
- assisting the client in the pre-trial settlement of a dispute with the tax authorities on the issue of writing off commodity losses
- support of the client in pre-trial/judicial settlement of the dispute with the tax authority on the issue of legitimacy of accounting for royalty payments
Mikhail Begunov, Nikita Zharov
The tax authority, as part of its pre-inspection analysis, concluded that the taxpayer had accounted for tax purposes for business transactions with "technical" companies. In view of the above, the taxpayer was offered to adjust its tax liabilities by more than 17 million rubles. The Tax Compliance team helped the client to elaborate a legal position that confirmed: (1) the reality of business transactions with the disputed counterparties; (2) the client's "commercial" discretion before entering into relations with the disputed counterparties; (3) the reality of obligations fulfillment under transactions directly by the declared counterparties.
The tax authority accepted the arguments of the taxpayer, and decided not to conduct an on-site tax audit against him.
Support of the client in the framework of the appeal of the client on the issue of the legality of accounting exchange rate differences
Mikhail Begunov, Nikita Zharov
The Company was accounting for profit taxation purposes for income/expenses in the form of exchange rate differences. Based on the results of the on-site tax audit, the tax authority concluded that the Company's expenses in the form of exchange rate differences do not meet the criterion of documentary support and should not be taken into account for profit taxation purposes
The Tax Compliance team has prepared an appeal to the superior tax authority (Department of the Federal Tax Service of the subject), in which it: (1) presented evidence of sufficient documentary support of the respective expenses; (2) pointed out the methodological errors committed by the auditors in calculating the additional tax charges. Upon consideration of the appeal, the superior tax authority upheld the Company's position in full.
Express - analysis of client's business activities for the presence of tax risks
Mikhail Begunov, Nikita Zharov
The Tax Compliance team had the task to perform an express analysis of the client's business activities to check the presence of tax risks. The project successfully applied the model of "risk-oriented" approach that implies checking the areas of the Company's business activities most exposed to tax risks (income tax and VAT).
Based on the results of the analysis, the Tax Compliance team has identified certain business transactions that are the most associated with tax risks and developed a set of measures aimed at reducing them.
Supporting the client (owner of one of the largest shopping malls in Moscow) in challenging the cadastral value of the property
Nikita Zharov
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.
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.
Analysis of tax risks associated with the transfer of gift cards to customers
Nikita Zharov
The team was tasked with analyzing the income tax and personal income tax risks that may arise from the transfer of electronic gift cards to customers.
As a result of the analysis, proposals were developed aimed at managing tax risks in the transfer of gift cards to customers
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.
Support of the client in the field tax audit and pre-trial appeal on the validity of the application of the reduced tax rate at source
Nikita Zharov
A company applied a reduced withholding tax rate in relation to dividends distributed to a foreign shareholder. The tax authority, as part of an on-site tax audit, investigated the circumstances of the foreign organization's activities and the legitimacy of the application of the preferential provisions of the IRS. As a result of the audit, the tax authority concluded that the standard rate of 15 percent was to be applied to dividends.
The team helped the client to successfully pass an on-site tax audit, in particular assisted in preparation of answers to tax authorities' requirements, accompanied the client during interrogations of employees and other control measures, provided methodological support to the client on arising issues. Subsequently, the team helped to form a legal position that was used by the client during the pre-trial and trial stages. As a result, the dispute with the tax authorities was successfully resolved in favor of the client in court
Supporting the client in the process of separating the IT function within the Group into a separate organizational structure
The client decided to separate the IT function within the Group into a separate organizational structure. Our team was tasked with determining the tax treatment to be applied by the new IT company, as well as preparing recommendations to mitigate tax risks that could arise in connection with the reorganization.
Nikita Zharov
As a result of the analysis, the team prepared recommendations for the client on the most appropriate tax regime for the new structure, as well as developed proposals aimed at managing the tax risks associated with the reorganization.
As a result of the analysis, the team prepared recommendations for the client on the most appropriate tax regime for the new structure, as well as developed proposals aimed at managing the tax risks associated with the reorganization.
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.
Support of the client in appeal against the decision of the tax authority on the issue of bringing to responsibility for willful non-payment of taxes
Mikhail Begunov, Nikita Zharov
Based on the results of a tax audit, the tax authorities brought the taxpayer to liability provided for in Paragraph 3, Article 122 of the RF Tax Code ("willful" failure to pay taxes / 40% fine). Tax Compliance team helped the client develop a legal position according to which the tax authority had no grounds for qualification of the taxpayer's actions as "intentional".
The higher tax authority accepted the arguments of the taxpayer. In particular, the qualification of the tax offense was changed and additional mitigating circumstances were taken into account. As a result, the penalties were reduced by 87%. The economic effect for the client was 7.5 million ₽.
Analysis of tax risks associated with the application of a reduced VAT rate on the sale of certain goods
Mikhail Begunov, Nikita Zharov
The client purchases certain goods from suppliers, on the sale of which the suppliers apply a reduced rate of VAT. The client subsequently sells these goods as part of its own business activities, subjecting them to a VAT rate of 20%.
The client was interested in analysing the possibility of applying a reduced VAT rate when selling the said goods, as well as the mandatory legal requirements that the client needs to comply with in order to achieve the said objective.
As a result of the project, the Tax Compliance team managed to assess tax risks associated with the application of the reduced VAT rate for the Client and to suggest ways to minimize them.
In particular, in the course of the project Tax Compliance specialists: (1) analyzed documentation relating to the products sold by the client; (2) developed proposals on changing the document flow in order to apply the reduced VAT rate.
Support of the client in appealing to the Central Office of the Federal Tax Service of Russia against the decision of the tax authority on the issue of bringing to responsibility for willful non-payment of taxes
Mikhail Begunov, Nikita Zharov
The tax authority based on the results of a tax audit held the taxpayer liable for non-payment of taxes. On appeal, the superior tax authority accepted some of the taxpayer's arguments, but refused to take into account certain mitigating circumstances in order to reduce the amount of penalties. The Tax Compliance team helped the client develop a legal position for submission to the Central Office of the Russian Federal Tax Service.
The Central Office of the Federal Tax Service accepted the arguments of the taxpayer. In particular, certain mitigating circumstances were taken into account. As a result, the amount of penalties was reduced fourfold.
Analysis of the possibility of redomiciliation of a business entity in the ATS
Nikita Zharov
The team was tasked with selecting the best jurisdiction for the holding company within the Group. The team analyzed various jurisdictions for opportunities to create / relocate a holding company within the Group. As part of this analysis, including the possibility of redomiciliation of the business in the ATS was considered.
As a result of the analysis, the client was offered various jurisdictional options for the holding company within the Group.
Mikhail Begunov, Nikita Zharov
The Tax Compliance team was faced with the task of assessing the prospects for the client to obtain the status of an accredited IT company.
Based on the results of the analysis, the Tax Compliance team came to the conclusion that in the current period the client does not meet the conditions established by Decree of the Government of the Russian Federation of September 30, 2022 N 1729. In addition, the Tax Compliance team developed a road map in which it outlined a possible algorithm of actions that will allow the client to apply for the status of an accredited IT company in the next period. The client's management approved the roadmap and decided to implement the Tax Compliance proposals in order to ensure the possibility to apply for the status of an accredited IT company in the next period
Supporting the client in the pre-inspection analysis
Nikita Zharov
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.
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.
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
Mikhail Begunov, Nikita Zharov
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, Andrey Solomyany
Under the contract, the client (the general contractor) was to receive income from the client. At the same time, the client had a payable to a subcontractor. The client was interested in setting off the counterclaims and analysing the resulting tax risks.
As a result of the project, Tax Compliance team managed to assess potential tax risks related to the transaction for the client and suggest ways to minimise them (changing the documents on business transactions, justifying the existence of a "business purpose" of the transactions, etc.).
Mikhail Begunov, Nikita Zharov
The Tax Compliance team had the following tasks: (1) to analyze the possibility of obtaining the status of an accredited IT company by the organization; (2) accompany the client in obtaining the status of an accredited IT company.
Based on the results of the analysis, the Tax Compliance team suggested that the client finalize the organization’s website in order to ensure its compliance with the requirements established by Decree of the Government of the Russian Federation of September 30, 2022 N 1729. After making adjustments, the Tax Compliance team: (1) helped the client collect a package of documents required to apply for obtaining the status of an accredited IT company; (2) assisted the client in drafting a statement confirming the share of the company's income from IT activities. Based on the results of consideration of the client's application, it was decided to include it in the list of organizations accredited in the field of IT.
Checking the possibility of applying the tax incentives provided for in the IT maneuver
The Tax Compliance team had the task of analyzing certain types of business transactions for the possibility of applying VAT and income tax benefits.
Mikhail Begunov, Nikita Zharov
Analysis of individual business transactions for their compliance with the conditions for the application of VAT exemption and accounting for the purpose of 90% threshold of income from IT-activities was carried out.
Based on the results of the analysis, Tax Compliance team has come to the conclusion that the business operations of the client comply with the conditions stipulated by Articles 149 and 284 of the Tax Code of the Russian Federation; recommendations on the improvement of the internal document flow in the company have been prepared as well. As a result, the client decided to start applying the tax benefits provided for by the IT maneuver.
Defending a construction company during a tax audit
Mikhail Begunov, Alexander Dmitriev, Nikita Zharov
The tax authority conducted an on-site audit of the client for all taxes and levies for a three-year period. As a result of the on-site tax audit, the auditors made claims on transactions with a number of counterparties. In the tax authority's view, the client had recorded business transactions with 7 technical entities in breach of Article 54.1 of the Tax Code.
Tax Compliance specialists helped the client to successfully complete an on-site tax audit. In particular, in the course of the project the Team:
(1) helped develop a legal position as part of the preparation of objections to the act;
(2) represented the client in the meetings with the tax authorities;
(3) accompanied the client in the framework of additional tax control measures.
Due to the team's assistance, the testimony of the general director of one of the disputed counterparties was admitted into the tax audit file. The CEO's testimony helped convince the auditors that all of the client's business transactions with one of the disputed counterparties were real.
The tax authority's additional charge was reduced by 40%.
Mikhail Begunov, Nikita Zharov
A client provides IT services for a parent company. The company believed that the IT services provided to the parent organisation may not comply with the provisions of the Russian Tax Code for the application of tax exemptions. The company contacted Tax Compliance in order to assess the possibility to apply tax exemptions.
The Tax Compliance team as a result of the project: (1) analysed the client's intercompany agreements to determine the validity of tax exemptions for IT companies; (2) developed proposals to adjust agreements and primary documentation to ensure their compliance with tax legislation.
Supporting the client (international pharmaceutical manufacturer) in the pre-testing analysis on the interaction with the "technical" organization
Nikita Zharov
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.
Successful appeal of additional VAT charges in a tax reconstruction case
Mikhail Begunov, Nikita Zharov, Andrey Solomyany
In the course of an on-site tax audit, the tax authority questioned the reality of the Company's relationships with a number of disputed counterparties. As a consequence, the tax authority reconstructed the Company's tax liabilities, which were based on information about real business transactions. At the same time, the tax authority denied the Company the right to a VAT deduction for relations with real counterparties. In the opinion of the tax authority, the Company was not entitled to a separate VAT deduction (as part of the reconstruction) due to the expiration of the three-year period established by Art. 172 of the Tax Code, as a prerequisite for applying deductions.
Tax Compliance team helped the client to prepare a legal position and represented the company in court proceedings. The court of the first instance fully satisfied the claims of the Company, admitting unlawful additional charges of VAT (including the appropriate amount of penalties). The decision of the court may have a significant impact on the development of practice of application of Article 54.1 of the Tax Code, in particular on the issue of the procedure of determining the actual size of the tax liabilities and the inapplicability of the condition of the deadline for claiming deductions in case of tax reconstruction.
Analysis of the effectiveness of the taxpayer's internal control system for selecting and interacting with counterparties
Mikhail Begunov, Nikita Zharov
The Tax Compliance team was tasked to analyze the client's internal control system for the risks of entering into/interacting with "technical" companies. The project analyzed: (1) internal documents of the client; (2) the client's approach to audit activities in relation to potential / existing counterparties; (3) the functionality of the client's responsible employees.
The Tax Compliance team identified ineffective areas of the internal control system and prepared recommendations aimed at reducing the risks of entering into business relationships/interactions with "technical" companies.
Supporting intragroup debt restructuring in the context of sanctions restrictions
Mikhail Begunov, Nikita Zharov
The client planned to restructure intragroup indebtedness totalling more than RUB 42bn. The transaction was complicated by tax risks, as well as restrictions imposed by currency and sanctions regulations.
The Tax Compliance team analysed currency and tax legislation as well as their application, including issues related to repatriation of funds under loan agreements, tax consequences of assignment of rights, transfer of debt, thin capitalisation rules for leasing companies and application of provisions of double taxation avoidance agreements.
As a result of the project, Tax Compliance team managed to offer the client a way of carrying out a business transaction which would meet the requirements of currency legislation as well as be the least exposed to the risks of tax legislation violation (including debt transfer between the Group companies / forgiveness of debt in the framework of economic relations between the "parent" - "subsidiary" companies).
In addition, the Tax Compliance team was able to identify areas of tax efficiency improvement in relation to the proposed transaction, in particular, it proposed a method of transaction that allowed avoiding tax payments under thin capitalisation rules.
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