FBK Legal Defends Client in ₽500 Million Tax Dispute

FBK Legal lawyers have defended their client’s interest in a tax dispute considered in the West-Siberian Judicial District.

Following an on-site tax audit, the tax authorities filed tax claims in respect of corporate property tax, VAT and income tax:

·         corporate property tax was charged on construction in progress assets, which, according to the tax authorities, were ready for operation

·         corporate property tax was also charged on equipment installed in buildings and on structures qualified by the tax authorities as real estate components

·         the VAT claim concerned the rules for tax reversal and refund in case a contractor reduced the value of pre-paid works

·         the income tax claim was caused by the refusal of the tax authorities to recognise expenses as deductible if they were associated with the acquisition of fixed assets but incurred after the fixed assets had been entered in books.

The courts of three instances (Commercial Court of the Yamalo-Nenets Autonomous District, Eighth Commercial Court of Appeal, Commercial Court of the West-Siberian District) ruled that the tax claims were unlawful in all cases. The amount of the claims cancelled was over RUB 500 million.