Preparing objections to a field tax audit report

Lawyers of the St Petersburg Tax Practice successfully completed a project to prepare objections against the field tax audit report drafted in relation to our client, an entrepreneur developing a regional retail chain in several regions of the North-Western Federal District. The tax inspectorate had concluded that the client created a scheme to avoid taxation in the form of ‘splitting up the business’ among several individual entrepreneurs. In the tax inspectorate’s opinion, the client was obliged to pay VAT and profit tax on income received not only from the wholesale of goods but also on the retail sale of them. We assisted the client in reducing by more than 2,000 times the amount of taxes additionally assessed (from RUB 70 million to RUB 31 thousand) at the stage when the audit materials were considered within the tax inspectorate. Our lawyers not only proved that in this case the additional assessments were unjustified, but also identified a number of serious mistakes made by the tax inspectorate when it determined the amount of income from retail sales.