CMS Russia Tax Outlook #11 | March 2010
Interative Tax Audits : New Approach
Recent history demonstrates that in times of economic recession tax control procedures are significantly tightened. The reasons for this are quite apparent: while companies’ incomes and, consequently, tax payments are considerably decreased1, the tax authorities try to achieve their tax collection plan at any cost. As a result, tax authorities pay more attention to documentation justifying the deductibility of input VAT, incurred expenses or the right to apply a tax exemption and seek new possibilities of conducting more information inspections and verifications as well as of carrying out of iterative, cross and additional tax audits. However, two recent widely debated Decrees of the Russian Supreme Arbitration Court that express an official viewpoint and consider the grounds and legal consequences of iterative tax audits seem to improve the position of taxpayers in relation to the tax authorities.
...
