The First Volga Tax Forum Sponsored by Pepeliaev Group
On 20-21 May 2010, the first Volga tax forum “Tax Disputes: Theory and Practice” took place in Kazan. The forum was organised by the Kazan State Financial and Economic Institute (KGFEI) and the Nalogoved magazine and was sponsored by Pepeliaev Group.
In his opening speech, Shamil Valitov, the rector of the KGFEI, professor, with a Ph.D. in economics, noted that the forum was an effective tool to ensure a true dialogue and interaction between society and the government, as well as business and political circles in promoting harmonious development of the economy. The President of the Republic of Tatarstan, Rustam Minnikhanov, in his welcoming letter addressed to the forum’s participants expressed confidence that “the forum will contribute essentially to resolving topical problematic issues of tax legislation to facilitate economic growth and modernisation of the economy of Russia and the Russian regions”.
The forum was dedicated to the changes in tax legislation in 2010, trends in tax administration, the practice of pre-trial and court resolution of tax disputes and liability for violations of tax law. Within the framework of the forum, Vadim Zaripov, head of the analytical service of the law firm Pepeliaev Group, deputy editor-in-chief of the Nalogoved magazine delivered a speech addressing novelties in tax legislation and conducted a practical seminar “The system of corporate tax safety”.
Roustam Vakhitov, head of the group for international taxation of the law firm Pepeliaev Group, spoke about the increasing role of international taxation and related changes in Russian legislation, including in connection with the exchange of information between the tax authorities of various countries and typical risks when applying international tax structures. He pointed out that a company, when entering foreign markets, should analyse and monitor tax risks and take measures to mitigate them. Moreover, tax planning should not be based on assumptions and hope that the Russian tax authorities will not discover part of the foreign structures used.
A speech delivered by Anatoly Popovchenko, judge of the Russian Supreme Arbitration Court, attracted keen interest. The judge spoke about current practice on tax disputes and topical issues of tax law recently resolved by the Presidium of the Russian Supreme Arbitration Court. Using specific court cases as examples, he demonstrated how a system of case law is slowly but surely taking shape in Russia. He said that any forum participant can create a precedent on his/her own, since it is the applicant who substantiates the way the law is interpreted in court.
Alexander Guryanov, deputy head of the Administration for Tax Crimes of the Ministry for Internal Affairs of the Republic of Tatarstan, pointed to the latest changes in legislation relating to the increase in the minimum threshold for understated taxes entailing criminal liability for the taxpayer if identified by the authorities. The speaker noted that this legislative measure has already resulted in a decrease in the number of criminal cases initiated in connection with tax crimes. According to Leonid Kravchinsky, lead associate of the law firm Pepeliaev Group, the enactment of Federal Laws No. 293-FZ dated 26 December 2008 and No. 383-FZ dated 29 December 2009, which abrogated the right of the police authorities to inspect compliance with tax legislation, has not, however, improved the position of taxpayers. Now such inspections are performed in accordance with the Federal Law “On Investigative Activities”. Moreover, inspection activities are not limited by a thirty-day period and are in no way regulated by officially published instructions.
About three hundred participants took part in the forum: judges, representatives of supervisory and law enforcement authorities, companies, law firms and audit companies, attorneys-at-law, lectors and specialists of higher educational facilities and science and research institutions from Kazan, Moscow, St. Petersburg, Nizhny Novgorod, Samara, Saratov, Kirov, Ulyanovsk, Ioshkar Ola, Orenburg, Penza, Ryazan, Perm, Astrakhan, Almetyevsk and Naberezhnye Chelny. In particular, the forum speakers included: Galina Shatsilo and Ch.F. Gossamova, deputy heads of the Administration of the Federal Tax Service for the Republic of Tatarstan; Viktor Martynov, deputy chairman of the Arbitration Court for the Republic of Tatarstan; Maxim Ivanov, head of the Department for the Organisation of Administration of Insurance Contributions of the Russian Pension Fund of the Republic of Tatarstan; V.V. Kuzovkov, assistant professor of law of the KGFEI, Ph.D. in law; Gennady Kormakov, chairman of a panel of judges of the Federal Arbitration Court for the Volga Circuit; representatives of law firm and advisory companies and other tax specialists.
Evgeny Vasyutin, chairman of the Federal Arbitration Court for the Volga Circuit distinguished the correct discussion format chosen by the forum organisers saying that “for two days, the participants managed to discuss at the same table the issues faced by those who pay taxes, those who collect taxes and those who review disputes between the first two”. Despite the fact that the discussion results reached by the participants will be non-binding and merely recommendatory in nature, the forum will bring together the opposing sides in a tax dispute that seems to be worlds apart.
The issues discussed at the forum elicited vivid interest and raised pivotal topics for discussion among the participants. The format of the meeting and the friendly atmosphere enabled the participants of business circles, regulatory authorities and courts to share their opinions on topical issues relating to the application of tax law. The forum attendees noted that the format of dialogue chosen was highly productive and that the forum should be held on an annual basis.