Support of the refund of overwithheld tax
A Russian tax agent withheld tax on income paid to a foreign jurisdiction. The tax was withheld at the Russian tax rate, but the tax rate could have been lower under the provisions of the relevant Double Taxation Treaty. FBK Legal lawyers were asked to recover the amount of overwithheld tax.
We prepared and submitted an application for a tax refund with a set of necessary supporting documents to the tax authorities. The tax inspectorate considered the application, our lawyers interacted with the tax authorities providing comments and clarifications of the case. As a result, the tax authorities decided in favour of our client and refunded the overwithheld tax.
The case was complicated as there was not much practice of refunding such overwithheld tax, the tax authorities had no clear procedure to handle these issues, and the Tax Code of the Russian Federation provided for a long period for tax refund.
