What documents shall be requested from counterparty?

Apr, 25 2018

Commonly tax authorities are investigating if the company's deals are aimed at taxes evasion only. To minimize the risks of claims company should have proof of due diligence in choosing counterparties and concluding contracts. 


In particular it is recommended to request from counterparty: 


Certified charter copy; 


Certificates of tax and company registration (certificate of record)


Copies of documents confirming powers of signer (director, representative); 


Responsible person contacting information (name and telephone number)


Extract from bank accounts.


For certain cases some other documents may be required. For example, lease agreement shall be requested if the counterparty is located at a mass legal address. If a counterparty conducts licensable businesses a copy of corresponding license should be demanded. 


In case tax authorities decide that company did not conducted itself diligently, they may claim for receiving unjustified tax profit.