683 MILLION ROUBLES SUCCESSFULLY

A taxpayer’s representative appealed to Petukhov and Partners MBA due to the fact that the taxpayer was issued a report containing a proposition to pay extra VAT of 683 million roubles to the Budget by the results of the relevant in-house tax audit. The tax authority’s position relied on the fact that the organisation failed to both calculate and pay VAT to the Budget from the funds, received as part of the reassignment of the right of claim under the investment contract, as from the advance received.

Given the complexity of the transaction structure and mutual settlements between the investor, customer, contractor and new investor, Petukhov and Partners’ barristers prepared objections to the tax audit report on the merits of verifiable circumstances, as well as documents and extracts from their tax registers substantiating the legal position.

Based on the results of additional tax control measures, the principal and his lawyers’ position that the items actually received by the principal as part of the reassignment of rights of claim cannot be declared as an advance payment or entail the income and added value generation is accepted as justified by the tax authority. This resulted in a decision to reject holding the organisation accountable for tax offences with zero additional charges.

Party: K.I. Petukhov