Latest tendency of court decisions related to simplified tax system

Jan, 16 2018

There are dozens of legal proceedings between companies and tax authorities regarding simplified tax system. We would like to draw your attention to some conclusions based on the latest court decisions:

 

  • In order to calculate the amount of tax in simplified tax system, it is necessary to take into account that income arises at the moment when money was credited to the account of taxpayer, not at the moment of forwarding. The Court identified that revenue arises only after money transfer is complete.

 

  • If taxpayer makes a mistake in notification of simplified tax system application and choses wrong taxation item («revenue» or «revenue minus expenses») taxpayer still will be able to choose any item to be indicated in tax declarations. In such a case courts will rely on the company’s actual payment and what was written in tax declarations.

 

  • Courts rule that if taxpayer has indicated VAT in tax invoice, the tax should be paid. Otherwise he will be charged fine and penalty.
     

Let us remind you, that to use the simplified tax system company shall meet legally established requirements. Particularly, number of employees should not be more than 100 people and amount of income do not exceed 150 million rubles.