30.04.09

Yet another case on the "economic justifiableness" on outsourcing was recently heard. Outsourcing schemes designed with the sole purpose of allowing the taxpayer to avoid the Unified Social Tax (ESN) were again declared illegal. The taxpayer and the legal entity (using the Simplified Taxation System) were found to be interdependent. The outsourcing agency did not have any other clients besides the taxpayer, and it did not have an HR staff working on recruitment. The six month ESN  tax declaration reported a loss.

The court confirmed the validity of the taxpayer’s expenses on maintenance of the building that he rents out, which belongs to him by right of ownership. The court denied the tax authorities’ claim that the taxpayer’s business activity was irrational (based on the fact that maintenance expenses exceeded received rent).

Resolution of the Federal Arbitration Court of Volga District # А55-9032/2008 dated March 5, 2009.

Translated by Alinga Consulting Group.

About Alinga Consulting Group

    Audit and Taxation     Legal     Accounting and Payroll

Questions? Ask Alinga's Experts!

Source: Российский налоговый портал