Tax law and tax disputes

On Recent Amendments to Tax Legislation Pepeliaev Group advises that the State Duma adopted on 9 June 2010 in a second decisive reading the draft law submitted by the Government introducing amendments to Part One and Part Two of the RF Tax Code.

A case on the application of the 32% rate and profit tax legislation of 1994 by contractors under the Sakhalin-II PSA A case on the application of the 32% rate and profit tax legislation of 1994 by contractors under the Sakhalin-II PSA for calculating their profit tax was referred to the Presidium of the RF Supreme Arbitration Court.

Tax legislative initiatives in the aviation sector Pepeliaev Group advises on the most significant draft laws on taxation in the aviation industry.

VAT may be refunded sooner if there is a dispute with a tax authority concerning the refund Pepeliaev Group advises that VAT may be refunded within a shorter period if there is a dispute with a tax authority.

New Resolution of the RF Supreme Arbitration Court on the VAT Rate Applicable to the Export of Technical Documentation Pepeliaev Group advises that Resolution No.17933/09 of the Presidium of the RF Supreme Arbitration Court dated 11 May 2010 has been posted on the court’s official website. The Resolution determines the practice of levying VAT on the export of maintenance and technical documentation in respect of aircraft engines and units and the application of corresponding deductions.

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.

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.

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.

Court Practice Confirms that Tax Overpayments Can Be Used to Effectively Protect Taxpayers The judges of the Russian Supreme Arbitration Court once again confirmed that the tax authorities must account for both the understatement and overstatement of tax liabilities when they audit taxpayers.

Resolution of the Supreme Arbitration Court on taxation of promotion activities at a retail chain: new issues The Presidium of the Supreme Arbitration Court of Russia issued Resolution No. 11175/09 further to an application from Dirol-Cadbury LLC on 22 December 2009.