Legal support of the Association of Bona Fide Agricultural Market Players on government procurement issues
Developing amendments to procurement laws (laws No. 44-FZ, 223-FZ, 135-FZ) to harmonise them with the requirements and application practice of article 54.1 of the Russian Tax Code
Article 54.1 of the Russian Tax Code contains a concept of obligation fulfilment by an appropriate person. The problem is that government procurement is subject to strict regulations and customers are not always able to request documents to prove that bidders are real and avoid formal counterparties. In certain cases, this leads to the situation when a government customer is forced to enter in contracts with fraudulent suppliers that managed to overcome formal procedures of government procurement laws.
The association asked FBK Legal to develop amendments to the laws to bring them in compliance with the real supplier concept stipulated in the Russian Tax Code.
Our lawyers analysed the effective legislation and prepared a draft federal law on amendments to the government procurement laws.
As a result, the client will submit the amendments for consideration by the State Duma, which will help government customers to eliminate fraudulent bidders that do not use their own resources to fulfil obligations under contracts.