Resolution of the Russian Supreme Arbitration Court on the Deduction of VAT on Unreliable VAT Invoices Has Been Published Pepeliaev Group advises that the Resolution of the Russian Supreme Court on the lawfulness of deducting VAT on VAT invoices containing inaccurate data and signed by unauthorised persons has been officially published.

Inclusion of income in taxable profit in the form of a right to use a trade mark received for no consideration Pepeliaev Group would like to draw your attention to clarifications of the Russian Ministry of Finance on including income in taxable profit in the form of the right to use a trade mark received for no consideration.

St. Petersburg Raises Minimum Monthly Wage Pepeliaev Group advises that the minimum monthly wage in St. Petersburg has been raised by a trilateral agreement.

Instruction No. 135-I of the RF Central Bank dated 2 April 2010 entered into force on 11 May 2010 Pepeliaev Group hereby informs that Vestnik Banka Rossii published on 30 April 2010 Instruction No. 135-I of the RF Central Bank dated 2 April 2010 “On the Procedure Governing the Adoption by the RF Central Bank of a Decision on the State Registration of Credit Institutions and Issue of Bank Licences”, which enters into force within 10 business days of the date of its official publication.

A taxpayer may not be disallowed VAT deductions if it did not and could not have known about the tax offence committed by its contracting party Pepeliaev Group advises that the Presidium of the Russian Supreme Arbitration Court has changed its own legal position on a taxpayer’s eligibility to a VAT deduction based on documents made in the name of so-called “deserted companies”, in other words, companies whose nominal directors refused accountability for their operations.

“On Approving the Requirements on Telecommunications Networks for the Purpose of Investigative Activity. Part 2. Requirements on Data Transmission Networks” The draft order “On Approving the Requirements on Telecommunications Networks for the Purpose of Investigative Activity. Part 2. Requirements on Data Transmission Networks” was published on the official web-site of the Russian Ministry for Communications and the Mass Media on 15 April 2010.

The list of proposed sites in 2010 to be granted for use for the purpose of geological exploration at the cost of subsoil users On 10 March 2010 the Ministry of Natural Resources and Environment of the Russian Federation (Minprirody) approved in Order No. 64 the list of proposed sites in 2010 to be granted for use for the purpose of geological exploration at the cost of subsoil users.

Inclusion of terms in a loan agreement with an individual on a forfeit (default interest) for violating the deadline for repayment of a loan (interest on the loan) does not contravene legislation and does not prejudice consumer rights The Presidium of the RF Supreme Arbitration Court has formed its legal position in respect of the inclusion by banks of terms in loan agreements with individuals that infringe upon consumer rights.

On Submitting Personal Data to Court Bailiffs A draft law “On Amendments to Certain Legislative Acts of the Russian Federation on Submitting Personal Data to Court Bailiffs” was submitted to the State Duma on 19 February 2010.

POSITIVE CHANGES IN COURT PRACTICE ON TAX DISPUTES Pepeliaev Group advises that the legal position formulated by the Russian Supreme Arbitration Court when issuing Resolution No. 15574/09 dated 9 March 2010 may improve the situation of taxpayers in respect of the practice of interpreting and applying legislation on expenses arising in relations with suppliers that submitted invalid documents.

30 April is the deadline for filing personal income tax returns Pepeliaev Group would like to remind you that 30 April is the deadline for filing personal income tax returns.

Russian Supreme Arbitration Court: VAT is accrued in the same way on the assignment of property rights to residential and non-residential premises In Resolution No. 13640/09 dated 25 February 2010 the Presidium of the Russian Supreme Arbitration Court recognised that the tax base on the sale of property rights to residential and non-residential premises is determined as the difference between the sales price and the acquisition price of the property rights.