FBK Legal at CCI's All-Russian Tax Forum

Commerce and Industry of the Russian Federation. He contributed to a discussion about a tax clause as a way to protect property interests from unlawful actions of counterparties. The forum was attended by representatives of the Russian Federal Tax Service, the Russian Association of Responsible Industries, Gazprom, Siemens, HPC Mosenergo, the CCI and Tax&Legal Management.
They discussed civil law instruments related to interaction with counterparties, representations and warranties, tax clauses under articles 406.1 and 431.2 of the Russian Civil Code, recovery of damages/losses from counterparties, access to an information resource with data on tax gaps and prevention of tax offences by participants of civil law relations. Alexander said that as a result of changeable law enforcement it is necessary to search for new alternative tax risk management methods. A tax clause is a way to shift risks when an entity's tax compliance does not guarantee the lack of claims against it. That instrument is primarily aimed to perform a regulatory function if it is applied by the majority of market players. The discussion resulted in a conclusion that a tax clause may become a deterrent for counterparties? abuses, provide for fair risk sharing and support a healthy economy.