The Russian tax authorities frequently challenge the expenses and input VAT that companies have incurred on transactions with shadow companies. On 2 October 2018, the Russian Federal Tax Service published on its website a new set of information on taxpayers that can be used for verification purposes. From now on, when using the FTS portal to check on a counterparty, you will be able to see the following information: records on the counterparty from the Unified State Register of Legal Entities (USRLE); taxies and levies paid by the counterparty for 2017; income and expenses reported in the counterparty’s financial statements; the average number of employees at the counterparty; special tax treatments applied by the counterparty; and information about the counterparty’s membership in a consolidated group of taxpayers.
Information and records about tax offences (if any), unpaid tax balances and overdue taxes and levies are expected to be published in December 2017.
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