Remedying critical errors of corporate tax functions

Background

The audit of client’s tax function revealed incorrect performance of tax obligations. An erroneous payment of tax (not to the intended tax inspectorate) could lead both to withdrawal of a large amount of money from the company’s operations and it’s becoming subject to a criminal action. On top of that, the period for claiming setoff or refund was running out.

The Case

Within very short timeframes, CG lawyers prepared and provided consultancy on how to simultaneously refund the extra paid money (the tax credit request was sent just 4 days before expiry of the claim limitation period) and pay the tax in correct manner, and so helped the company’s beneficiary owners to avoid fines and criminal action.

Otherwise, the flaws in observation by the company officers charged with the tax function of article 383 of the RF Tax Code could both result in unreasonable withdrawal of considerable amount from operations and cause adverse consequences to the Company as a material violation of tax legislation.

Why is it of importance?

The newly adopted property taxation rules create a number of sticking points for commercial property owners: many of them continue paying taxes “as usual” which provides grounds for claims from tax authorities; owners cannot use full advantages of the available tax reliefs and privileges and incur increased costs as a result. For instance, many of them continue paying taxes on movable property constituting a part of immovable property. This leads to overpayments and potential breaches.