12.04.08

Tax authorities did not like strange operations performed by the taxpayer discovered in the process of a tax inspection. A company created an associated enterprise and contributed its property into the capital of newly a founded organization. The corporate taxpayer claimed that the initial price of received stocks was equal to the appraised value of contributed property. Thus, after the stock sold, taxpayer claimed financial loss and deducted it from its profit tax base.

The court did not approve of these manipulations. Article 280 paragraph 2 of TC determines expenses for tax purposes based on a stocks’ initial price, must be used in correlation with the regulations of Article 277 – which forbid using "market factors" in appraising property contributed into founding capital.

Based on the above, the taxpayer had no grounds for claiming the full amount of contributed property without taking into consideration its market value. This ruling N Ф04-1867/2008(2263-А70-15 is from the Federal Arbitration Court of the West-Siberia Region from March 12, 2008.   

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