06.10.04

Alexey Kudrin is hopeful that an explanation is forthcoming from the R.F. Constitutional Court regarding the infamous decision on VAT and borrowed funds (No. 169-O of 08.04.04), according to the publication "Accounting, Tax, Law." This decision prevents VAT deduction on goods purchased using borrowed funds, until the loan is repaid. Last week the Finance Minister informed journalists that the higher court will be issuing further explanations in the nearest future as concern this decision. "Such treatment of tax norms is cause for serious concern. I believe that in the near future the Constitutional Court will answer these questions, most likely in favor of the taxpayers and economic logic which at the moment should be directed toward supporting investment possibilities and expansion of production," Mr. Kudrin hopes.