21.07.08

On July 8 the Moscow City Council discussed issues concerning outsourcing and out-staffing. One council member pointed out that it is not clear under what circumstances using these business models would be illegal. According to him, sometimes outsourcing is necessary for a company in order to stay competitive. However, the tax service almost always finds "unjustified tax benefits" in its use. The head of the board of tax inspectors said that in one case they decreed it a “theft of state funds by means of tax underpayment.”

The Executive Secretary of the Expert Council pointed out that taxpayers have the right to the lawful optimization of their companies, which includes the right to outsource. The tax officials’ unsystematic use of the norms outlined by tax and civil legislation, however, deprives taxpayers of this right. According to the Executive Secretary, the current legislation sets clear guidelines for which companies have the right to use the simplified taxation system. Situations are arising where some companies outsource with no problems, while for others the same activity is declared illegal. The Expert Council said that the confusion this causes among tax officials forces taxpayers “to bend over backwards in order to find effective business models.”

Dmitry Dedov, a member of the Supreme Arbitration Court of the Russian Federation, stated that the judiciary system will unfortunately have to continue reviewing cases concerning outsourcing schemes for the time being. “Sometimes tax evasion is the particular goal of such schemes,” said Dedov. “And right now only the courts can decide when an unjustified tax benefit has occurred.”

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Source: ИА "Клерк.Ру"