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Tax inspection in Russia

Foreign companies starting or planning to do business in Russia wonder how the Federal Tax Service operates and how they can handle unscheduled tax inspections or protect themselves from tax disputes.

We will now briefly describe what tax inspections entail in Russia.

Who can examine your tax returns and why?

The Federal Tax Service may examine your tax returns for a variety of reasons, in particular when:

  • Obvious errors are made in tax returns;
  • Continuous losses are claimed tax returns;
  • The VAT invoice figures indicated as deductions are inconsistent with those filed by the seller.

How are tax inspections conducted?

Some inspections are conducted entirely by mail. The Federal Tax Service sends a request for more information or documentation supporting the figures specified in tax returns, and the requested documents and information can be sent by mail as well.

Other inspections may be conducted at the place of business under review or at the local office of the Federal Tax Service.

When the inspection is completed, the Federal Tax Service may propose changes to tax returns.

You can then either agree with those changes and pay additional tax, or disagree with the changes and appeal the decision issued by the Federal Tax Service.

What if we disagree with the decision issued by the Federal Tax Service?

Tax decisions may be appealed to the Tax Service Regional Office of Appeals.

If disagreement persists after such appeal, the case may be taken to court.

How can Accountor help?

Accountor Russia offers all-inclusive tax support services! We also develop defense strategies for all disputes with the Federal Tax Service as well as represent you and your company’s interests before the Federal Tax Service. Please feel free to contact us to find out more.

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