FTS Must Reimburse Reputational Harm
If actions of the employees of the Federal Tax Service (FTS) caused harm to company’s reputation, in addition to direct loss or missed profit, the fiscal administration must pay the company appropriate compensation. This is a according to a resolution of a plenary session of the Supreme Arbitration Court entitled “On Compensation for Harm Caused by State Agencies, Local Governments, and their Public Officers” from December 18, 2007.
To receive compensation a company must present evidence proving three things: the damage; the unlawfulness of tax authorities’ actions; and the causal connection between the unlawful actions and incurred damages.
The company must prove the extent of damage by substantiated calculations, i.e. calculation of costs, information about an average market cost of lost property and other reasonable evidence. Calculations may include the use of customary business practices for estimation of the extent of caused harm.
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