Defended individuals in disputes regarding the offset of tax paid in Kazakhstan
The team from Pepeliaev Group has successfully protected the interests of individuals in disputes with tax authorities regarding the offset of Personal Income Tax paid in the Republic of Kazakhstan against Russian Personal Income Tax.
Previously, Forbes reported on mass personal income tax (PIT) audits targeting Russian citizens who have relocated to Kazakhstan. Tax inspectorates began issuing requests for tax returns from previous periods to be clarified and refusing to offset tax paid abroad.
It was precisely this issue with which a client approached us. They required support for their employees in dealings with the tax authorities, which were refusing to offset Personal Income Tax (PIT) paid in Kazakhstan during 2022–2024 against Russian Personal Income Tax in accordance with the procedure established by the Double Taxation Treaty between Russia and the Republic of Kazakhstan.
Lawyers at Pepeliaev Group were able to have additional tax assessments totalling approximately RUB 1 million cancelled at the pre-trial stage of the disputes (through objections to the audit report or as a result of appealing the tax authority's decision). In a number of cases, the tax authorities abandoned their claims even before issuing audit reports, based on properly prepared packages of documents substantiating the right to a tax offset.
In total, we averted potential additional tax assessments totalling approximately RUB 2.5 million for 20 of the company's employees.
In general, the tax inspectorates based their claims on a reference to letter No. 03-08-09/22765 from the Russian Ministry of Finance dated 14 March 2024.
The lawyers from Pepeliaev Group argued that the Ministry's position pertains only to specific instances of applying the Tax Code’s provisions and does not permit a tax offset to be refused automatically.
The project was led by Pepeliaev Group's Senior Partner Sergei Savseris and Associate Yulia Buldakova.
Previously, Forbes reported on mass personal income tax (PIT) audits targeting Russian citizens who have relocated to Kazakhstan. Tax inspectorates began issuing requests for tax returns from previous periods to be clarified and refusing to offset tax paid abroad.
It was precisely this issue with which a client approached us. They required support for their employees in dealings with the tax authorities, which were refusing to offset Personal Income Tax (PIT) paid in Kazakhstan during 2022–2024 against Russian Personal Income Tax in accordance with the procedure established by the Double Taxation Treaty between Russia and the Republic of Kazakhstan.
Lawyers at Pepeliaev Group were able to have additional tax assessments totalling approximately RUB 1 million cancelled at the pre-trial stage of the disputes (through objections to the audit report or as a result of appealing the tax authority's decision). In a number of cases, the tax authorities abandoned their claims even before issuing audit reports, based on properly prepared packages of documents substantiating the right to a tax offset.
In total, we averted potential additional tax assessments totalling approximately RUB 2.5 million for 20 of the company's employees.
In general, the tax inspectorates based their claims on a reference to letter No. 03-08-09/22765 from the Russian Ministry of Finance dated 14 March 2024.
The lawyers from Pepeliaev Group argued that the Ministry's position pertains only to specific instances of applying the Tax Code’s provisions and does not permit a tax offset to be refused automatically.
The project was led by Pepeliaev Group's Senior Partner Sergei Savseris and Associate Yulia Buldakova.