“Unreasonable tax benefit” — a comment by Vladimir Amelchuk for the Agency of Legal Information
The fiscal department is trying to hold the companies accountable for the lawfulness of their partners. Concluding the contract, honest businessmen are obliged to exercise "due diligence", but there is no clear criteria for evaluating counterparties are not offered. The tax legislation presumes the conscientiousness of taxpayers, their right to enjoy benefits and other legal means to reduce the amount of deductions to the budget. Irreconcilable doubts about guilt are interpreted in favor of citizens and companies. However, some market participants use de facto fraudulent schemes, including writing off large amounts through front companies.
Vladimir Amelchuk, Head of Tax Practice, Prime Advice:
Today it is extremely rare to meet disputes about writing off large expenses for some unverifiable service (consulting, marketing research, and the like). Unreasonable benefits are most often attributed to transactions that are themselves objectively taken place, and the tax authority does not even dispute this. Claims are reduced to participation in such deliveries of unscrupulous companies. And sometimes it's not about the "first link" - the direct counterparties of the audited taxpayer, but about the suppliers of the "second and subsequent links".