The tax benefit for movable property. No avoidance – no balks to apply

23 October, 2018

The Supreme Court of the Russian Federation has published its ruling on Azot case #А68-10573/2016, and we can now review the arguments.

The case dealt with the application of tax benefits for movable property that had been acquired from a related party. The main conclusion goes beyond the scope of the case under consideration: a provision of the Russian Tax Code (RTC) is to be applied based on the context of its adoption.

In other words, if the law has anti avoidance rules, and your interpretation of the rules differs from that of tax authorities but you have not attempted to avoid paying taxes, you will have a realistic chance of proving your position.

Contact us

Yana Zoloeva

Partner, Russia Tax and Legal Leader, PwC Russia

Tel: +7 (495) 967 6152

Valeria Efremova

Senior Tax Manager, PwC Russia

Tel: +7 (495) 967 6378

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