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13
December
2017

On judicial practice in cases involving fraud

At a Plenary Session of the Russian Federation Supreme Arbitration Court on November 30th, 2017, Resolution No. 48 was adopted, which is entitled "On judicial practice in cases involving fraud, misappropriation, and embezzlement" (hereinafter Resolution No. 48). They did not manage to do the very first time they tried - during a meeting held two weeks before that, the document was sent back for revision. We will look at the most interesting new aspects in Resolution No. 48, including those that caused the most lively debate among those that developed it.

EZH-Yurist
7
December
2017

New constitutional procedure

Last amendments in the rules of the RF Constitutional Court, determine the general rules of the constitution procedure, approved on October 10, 2017. Mentioned amendments have de facto fixed application of the Roman law institute (аmicus curiae) in Russia.

EZH-Yurist
2
November
2017

Are there any boundaries for customs inspections?

Starting August 30, 2017 some amendments to Federal Law No. 311-FZ “On customs regulation in the Russian Federation” (hereinafter Law No. 311-FZ) entered into force that provide for the potential to both introduce a ban on trading certain types of goods in Russia and expand the authority enjoyed by customs agents. During a “sanctions standoff,” legislators came to the conclusion that adopting measures to ban importing certain types of goods into the country might not prove sufficient – so they permitted imposing restrictions on importing, storing, acquiring, or otherwise trading them inside Russian borders (this includes people acquiring them for their personal use).  

EZH-Yurist
19
September
2017

How the Federal Tax Service will now prove failure to pay taxes

The Federal Tax Service of Russia, in letter No. ED-4-2/13650 dated July 13, 2017 sent guidelines to its regional authorities that needed to be put in place called “On researching and proving incidents involving intentional failure to pay, or making incomplete payments for, taxes (duties),” which was developed jointly with the Investigative Committee of the Russian Federation. The guidelines describe in sufficient detail the methods that can be employed to prove when there is a failure to pay taxes (duties) – or they were not paid in full – so that parties can be held liable under Article 122, Clause 3 of the Russian Federation Tax Code. This stipulates applying penalties in the amount of 40% of whatever was not paid. In addition, the document’s authors do not conceal the fact that not only are they seeking to increase the amount of the fine imposed under this article, but also that they are counting on improving the prospects involving criminal liability for materials that are sent to the investigative authorities to resolve the issue of whether to file criminal charges.

Financial Director
8
June
2017

Taxes and customs

We will comment on the position taken by the Russian Federation Supreme Court regarding the practice of applying tax and customs legislation. What is the significance of the decisions included in the Judicial Review of Russian Federation Supreme Court Legal Practice No. 2 (2017), approved by the Russian Federation Supreme Court on April 26th, 2017?

EZH-Yurist
22
May
2017

Regulatory agencies issue warnings to businesses

Starting January 1st, 2017 changes came into effect concerning Federal Law No. 294-FZ dated December 26th, 2008 (version from February 22nd, 2017) "On protecting the rights of legal entities and individual entrepreneurs when the federal or municipal governments are exercising regulatory powers (oversight),” that provide for a new method for regulatory and oversight agencies to prevent organizations and business owners from violating mandatory legal requirements – specifically, by issuing warnings to entities that are under their jurisdiction.

Dmitriy Motorin, Senior Associate
EZH-Yurist
10
May
2017

Will a company’s general director pay its taxes?

On November 30th, 2013, certain amendments to the Tax Code came into effect that allow a company’s tax arrears to be recovered from individuals that have  a connection to it. Before, an unscrupulous taxpayer’s share of taxes could only be recovered from corporations that were dependent upon that taxpayer.  It is no secret that people doing business circumvented this rule of law by accumulating arrears and then transferring their business to an individual entrepreneur (sole proprietorship). Legislation has now plugged up this loophole, and now assets belonging not only to entrepreneurs, but also to founders and top managers themselves are at the center of attention.

National Business
16
March
2017

Taxes — what to expect in 2017

Spring is here, and, as always when spring comes, it is time to think about quarterly reporting on taxes, levies and contributions. In addition to the new procedure for calculating and paying pension, social and medical insurance contributions that has taken effect in 2017, about which National Business has already written in detail, this year sees a number of other changes, and we aim to shed light on the most interesting of them in this article.

National Business
20
February
2017

Contesting debtors’ transactions

The Russian Federation Supreme Court summarized judicial practice on issues related to the participation of authorized government agencies in bankruptcy cases, and the bankruptcy procedures applicable in these cases. As part of this case law analysis, the Supreme Court paid attention to those particular disputes during insolvency proceedings that contested debtors’ transactions involving paying mandatory payments, specifying, inter alia, the application of provisions under federal law 127-FZ, dated October 26th, 2002 entitled “On insolvency (bankruptcy)”, that came into force on September 1st, 2016.

EZH-Yurist
9
November
2016

Employment of foreign nationals in 2017: A reminder for companies

The norms of Russian legislation also apply to employment relationships involving foreign citizens. However, the employment of foreign citizens in 2017 has some unique features, the most important of which we consider in this article.

Financial Director
8
December
2017

Volgograd lawyer told, how losses can be recovered from the tax inspectorate

Much more Volgograd businessmen have faced the problem of blocking of bank accounts by the Federal Tax Service this year. Since they cannot dispose of proprietary funds, they face cash gaps and failure in payment of salary. Natalya Malikova, Vegas Lex Volga Directorate lawyer, has told to Volgogradskaya Pravda.ru how one can establish losses from such acts of the tax inspectorate to satisfaction of the court.

Volgograd Pravda.Ru
30
November
2017

Interdependent entities and controlled transactions: how can negative tax consequences be avoided?

On February 16th, 2017 the Russian Federation Supreme Court Presidium ratified its Overview of judicial practice in regard to cases involving the application of certain provisions in Section V.1 and Article 269 in the Russian Federation Tax Code. The court summarized practice with issues arising from the interdependence of entities and the controllability of transactions. In this article we will analyze the main rules for applying the provisions in Section V.1 and Article 269 in the Tax Code that are reflected in this Overview.

EZH-Yurist
26
October
2017

Streamlining judicial proceedings: is everything that is done always for the best?

A Russian Federation Supreme Court plenary session approved introducing a bill into the State Duma that calls for large-scale reform of the procedures for administering justice. As follows from the explanatory note, the main objectives of the amendments to procedural legislation are reducing the burden on the courts, and simplifying and speeding up the process of litigation. At the same time, simplifying the courts’ work, in this case, is achieved by imposing additional obligations and procedural risks on the participants in the process.

Dmitriy Motorin, Senior Associate
National Business
21
June
2017

Is a rentier an entrepreneur or not?

Having bought real estate in order to receive rental income, or to sell it later on, many people believe that if you pay personal income tax on the rent or sale then, as the famous slogan goes, you can sleep peacefully. However, that is not always true, since in a number of cases your activity can be deemed entrepreneurial.

National Business
25
May
2017

Bankruptcy for individuals – down what road is practice leading?

On October 1st, 2015 changes in the Federal Law entitled “On insolvency (bankruptcy)” came into force, according to which in relation to people who do not have the status of a sole proprietor the bankruptcy procedure can be initiated. On October 13th, 2015 the Russian Federation Supreme Court Plenary Assembly, in its Resolution No. 45, gave explanations concerning the application of new bankruptcy law’s provisions. Over the one-and-a-half years since the law has been enacted, judicial practice in applying the bankruptcy law’s provisions for individuals has already taken shape, and continues to take shape.

EZH-Yurist
22
May
2017

The allocation of risks among guarantors

Extending credit to various organizations is often accompanied by signing secured transactions involving surety and collateral that are geared toward protecting the bank’s proprietary interests in case there is non-performance of obligations.

National Business
3
April
2017

Activity by an annual general meeting for an LLC

The procedure for calling and holding an annual general meeting for an LLC is regulated by the federal law entitled “On limited liability companies”, by the company’s articles of incorporation, and its internal policy documents, and by the Russian Federation Civil Code. Failure to comply with these requirements may lead to the invalidity or nullification of decisions made at the LLC’s annual general meeting.

Business and Life
9
March
2017

Creditors' agreements vs Article 309.1 in the Russian Federation Civil Code

In 2015, amendments to the Russian Federation Civil Code came into effect that included, inter alia, the introduction of article 309.1. According to this article, creditors with a single debtor with homogeneous debt have the right to sign an agreement outlining the procedure for satisfying their claims against the debtor, including the order of precedence for repayment and the incommensurability of performance allocation. How do the provisions of the Russian Federation Civil Code and bankruptcy legislation match, and what are the explanations that the Russian Federation Supreme Court gives about this?

EZH-Yurist
16
November
2016

Changes to Tax Code in 2015-2016

The years 2015 and 2016 saw many changes in tax legislation, about which numerous articles have already been written and lots of commentary generated. Therefore, we will focus on the major innovations of income tax legislation for 2016, which had the greatest impact on the majority of credit institutions, and turn our attention to the court practice, which only began to form after changes were made to the Tax Code of 2015.

Bank Review
2
November
2016

What tax dangers are hidden in disqualification

As of April of this year, a new kind of responsibility for repeated flagrant violation of the requirements for accounting was established by the Administrative Offences Code of the Russian Federation, it’s disqualification. Earlier, this measure was used, for example, if a person interfered in the legal activities of inspection staff, committed violations during bankruptcy proceedings, etc. Today, it is much easier to fall afoul of the authorities – just make a mistake in the accounting records, or fail to provide all required documents. Moreover, the danger does not lie so much in the disqualification, as with transactions with entities, who find themselves on the side-lines.

Tax disputes
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