1 BILLION 93 MILLION ROUBLES SUCCESSFULLY

Prior to the principal’s appeal to the Bar’s lawyers, for more than one year, the client had endured the implications, negative for his business activity, of an on-site tax audit of the largest taxpayers conducted by the Interregional Inspectorate together with law enforcement representatives. The course of tax control measures included many seizures and interrogations of officials and counterparties of the audited organisation that paralysed the company’s normal business processes and operations.

After the appeal, Petukhov and Partners promptly analysed the tax authority’s claims and related numerous facts of the taxpayer’s business life, reviewed a significant amount of documentation, and compared it with the financial figures of accounting and tax registers, which resulted in a tax reconstruction project for calculating VAT and corporate income tax amounting to 107 million roubles that validated the adjusted model for legitimising most of the income tax expenses and VAT deductions accepted for accounting, which were not previously legitimised by the inspectorate.

Owing to a skilfully elaborated legal position and opportune legal assistance to the principal, the tax authority took account of the barristers’ method for calculating the amounts of additionally charged taxes based on their real economic rationale, as a result of which the tax amount payable by the decision to hold the taxpayer accountable decreased by more than four times, as compared to the results of the pre-verification analysis, and amounted to 107 million roubles.

Party: K.I. Petukhov