1. "Arrears Follow the Asset."
A court found it possible and acceptable to make tax claims not only upon the original taxpayer, but also on a new business owner who has received the assets of a tax defaulter.
2. The tax authorities have the right to check prices for tax purposes in uncontrolled transactions if there is "suspicion of dishonesty."
Shortly after new rules for monitoring controlled transactions came into force, the tax and financial authorities have tried to extend them to all transactions, regardless of whether they are controlled or not. In cases concerning this, the courts have sided with the authorities.
However, the Supreme Court, in allowing the tax authorities to check the prices of all transactions, made the reservation that such can be done only when inspectors suspect the taxpayer of operating in bad faith. However, "suspect" was not fully elaborated and thus the authorities have the opportunity to use these new powers at will.
3. In the absence of interdependence, the tax authorities have no right to carry out price checks for tax purposes.
This can be considered "cold comfort" in relation to #2 above. The Supreme Court of the Russian Federation has somewhat narrowed the tax authorities' right to check transaction prices. This move, in large part, was due to questions of what constitutes the "substantiality" of interdependence. Such arguments in tax cases, where one argues the wording of a law, have become rare in recent times. However, this is one instance where the argument has worked.
4. "Reality Trumps Diligence."
"Reality" has long been most important in Russian jurisprudence and doctrine. The Supreme Court of the Russian Federation has created a more or less clear structure around it. Essentially, if a deal is "not real" then any "prudence" applied is not important. Only if "reality" is present, is it necessary to look at the "prudence".
5. Field Audits Trump Desk Audits.
The tax authorities have, in practice, acquired the right to a "second try." The tax authorities have acquired the right to collect on the basis of a field audit even if a court has already ruled against such claims that were made previously on the basis of a desk audit.
Translated by Alinga Consulting Group.
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