The first practical manual for owners of commercial property in Moscow, prepared by the lawyers of Consul Group, has appeared on the market. This manual, the only one of its kind, is a collection of the most current legal information for 2020. It includes analysis of the legislation in force and examples of court practice gathered over the past 10 years.
The guide reviews the particular features of transactions with real estate, the problems of business splitting in Russia, and the taxation of commercial property today. Separately, it sets out courses of action for disputed legal situations. For example, a step-by-step instruction on what to do in 2020 if you disagree with the inclusion of your commercial property in the List of objects on which tax is paid on cadastral value. Or: what to do if the property is not included in the List, but it is to your advantage to pay the tax on cadastral value.
Especially timely will be the guide to the town-planning regulations of the city of Moscow, a summary of how to use them, the procedure for legalising unauthorised buildings, and a list of the adverse consequences of a property being held unlawful, in figures and in risks.
Today it is almost impossible to conceal mistakes that have been made, or to avoid liability for identified breaches of the law, whether in land and property relations or in matters of taxation. The Federal Tax Service, the City Property Department of Moscow, the State Inspectorate for Real Estate, Rosreestr and other public bodies often have more information about the organisation under review than its owner does. A failure to reckon with the explosive growth of the information-technology market, and a failure to adapt in time to the new rules of the game, like a disregard for the status of "owner of immovable property" and for the basic rules of law, can prove fatal not only for the beneficiary of the property but also for a top manager of the company,
- summed up Sergei Pivovarchik, managing partner of Consul Group.
A separate chapter is devoted to international tax planning in 2020. Over the past ten years tax authorities around the world have changed dramatically. They can now obtain almost any financial information on the movement of funds and on the actions of taxpayers abroad. The main thing to take into account when distributing passive income in favour of a foreign parent company is compliance with the criteria of the international convention and the OECD recommendations, with the Tax Code of the Russian Federation, and with the trend of court practice.
On the basis of an analysis of court cases, the lawyers of Consul Group identified three key signs that a taxpayer is abusing his rights:
- a transit character to the movement of funds in cross-border transactions;
- the absence of an economically justified business purpose for a presence in a particular jurisdiction;
- management and control of a group of companies from a single centre, without the creation of independent business units in foreign jurisdictions.
The same chapter presents a review of court practice on the payment of dividends to foreign organisations, on intra-group loans, and on a legal entity being held to be controlled from Russia.
The Business Guide is intended for business owners and for managers in real estate in Moscow, from small office premises to the largest commercial properties in the capital.
The manual also examines current questions, examples from practice, and the problems of land and property relations, of ownerless immovable property, and of the taking of land for state needs.
An overview version of the manual is available at the link.
Leave a request for the full version of the Guide. We reserve the right not to reply to requests from representatives of consulting and other companies that provide services in law, taxation and valuation to our current and potential clients.
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