29.09.08

Tax officials made a strike at the courts’ exemption from land tax: they assessed land tax for Russia’s Supreme Court Justice Department (hereafter – Department). Court proceedings revealed that part of the property was transferred for the Department’s permanent, unlimited use for purposes other than as court building.

The court ruling maintained right of courts with reference to Safety Law and Article 389 of the Tax Code which state that land made available to law enforcement agencies are considered removed from commercial circulation and are exempt from land tax. Tax authorities were not able to provide substantial evidence that Department also holds land used for its own buildings that can be subject to tax. (Ruling of the Federal Arbitration Court of North-Western Region of July 16, 2008 on case # А42-2584/2007).

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Source: Российский налоговый портал