FEDERAL TAX SERVICE REDUCES PRESSURE ON BUSINESS

Apr, 28 2017

The Federal Tax Service (FTS) has published new document advising tax inspectors to stop charging additional taxes for formal violations in drawing up documents, e.g. incorrect signature in reporting documents. FTS notes that it is more important to check existence and economical reasonability of business operations, rather than focus on formal and technical mistakes.

Also, FTS has set new criteria which should be used by companies to check their counterparties. For example, checking licenses.

FTS is going to control compliance with the requirements set in the document, through the system of internal control. In particular, it is possible to identify violations if company challenges the formal inspection decision to the central office of FTS.

Such position of FTS shows attempt to reduce pressure on business, and generally improve the investment climate in Russian Federation.