Tax Code amendments: new conditions for taxation base reductionбазы для компаний
In accordance with recent amendments to Tax Code there are changes in conditions for reduction taxation base. Now, in addition to requirements stipulated for particular taxes taxation base may be reduced only in case of observing 2 conditions in aggregate: a deal reducing taxation base is not aimed to tax avoidance; obligation related to this deal has been performed by counterparty, or another person obliged to perform obligations under this deal towards taxpayer. These stipulations demonstrate a policy formulated by the Superior Commercial Court of the Russian Federation earlier. According to this approach tax authorities are entitled to prove among the others that taxpayer made a transaction, which was not based on reasonable economic or other purposes (business goals). In this regard, in order to avoid possible problems in the reducing of taxation base, we recommend to continue requesting for documents confirming business purposes of the deal and reasonability of the taxpayer’s actions during its conclusion. Specifically, we recommend requesting from the counteragents registration documents (Charter, OGRN and INN certificates, licenses and permits allowing performance of special types of activities), as well as other documents confirming counteragent’s status, and authorization of person signing the contract.
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