31.07.06

At the beginning of this year, the Federal Tax Service (FNS) resolved to actively investigate so-called “grey” labor schemes, which allow evasion or underpayment of the unified social tax, income tax and pension contributions. FNS authorities have required constant monitoring of any organization claiming official salaries lower than the 4815 RUR minimum living wage as stipulated by Government Regulation #135-PP of 28.02.2006.

Organizations claiming salaries lower than the minimum legal wage of 1100 RUR will be prosecuted by the Labor Inspection. Any organization claiming salaries from 1100 to 4815 will be constantly monitored by the tax authorities. Special committees have been formed at each tax inspectorate specifically to monitor payment of income tax and pension contributions. Several organizations falling within these limits have already been called in to declare information on average monthly salaries, sum of taxes and contributions paid, percentage of wages paid in-kind, etc. Meetings are reported to be held in a working, positive manner, with no pressure applied but with an appeal to consciousness and imperative recommendation to raise compensation packages up to the level of minimum living wage. However, stricter measures can be applied to organizations who do not increase the size of the payments they make to the budgets.       

Source: Lilia Kozlova, Accountant, Alinga Consulting Group