Reduced the additionally assessed tax by almost RUB 500 million

The team was protecting the client under a pre-trial procedure in a tax dispute resulting from the tax authority’s use of an incorrect approach.

The dispute was beset with large-scale procedural violations by the tax authority: no documents were enclosed with the audit report concerning all the tax control measures taken by the tax authority, the audit report did not contain full information that would make it possible to identify the facts of tax violations and to prepare well-grounded objections to it, tax control measures were taken after the tax audit was over, the tax authority had not accepted, without a valid reason, a challenge of an expert and a specialist, and refused to raise the issues put forward by the taxpayer.

Our lawyers accompanied field tax audits and as attorneys, provided support to witnesses during interrogations. In the framework of this project, our experts prepared a range of complaints against the acts of the tax authority and the auditors, and prepared objections against the audit reports and statements of appeal.

This case deals with certain important legal matters: whether products (livestock feeds) can be reclassified in order to change the National Product Classification Codes which have been applied and approved and deny the reduced VAT rate; whether products can be reclassified in a situation when the company's position is supported by several expert opinions; at the same time, the tax authority reclassified transactions for domestic sales using the  Commodity Classification for Foreign Trade which is not applicable for domestic transactions.

Owing to our lawyers’ efforts, the additionally assessed taxes were reduced by almost RUB 1 billion. Currently, the remaining part of the dispute is being considered by the commercial court.