21.11.08

Tax officers ask tax payers for all sorts of primary documents during field audits. Few taxpayers contest such requirements. But often such requests are illegal.

The Supreme Arbitration Court of Russia recently considered a case involving a businessman who refused to give documents to tax officers. There were no errors, inaccuracies or inconsistencies in his declaration. The Supreme Arbitration Court of Russia ruled in the businessman's favor, canceling decisions by lower courts and invaliding the tax officers’ requests.

In doing so, the court confirmed the rule that tax officers cannot require documents during the office tax audits if there are no errors, inconsistencies or contradictions in the declaration. The judges noted that starting from January 1, 2007 the new version of article 88 of the Tax Code limited the right of tax authorities to require documents that serve as the basis for tax calculation and payments. Thus, the tax officers’ requirement of documents from the businessman is illegal.

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Source: Российский налоговый портал