Elena Kilinkarova has provided her comments to Pravo.ru on the topic of unjustified tax benefits

The website Pravo.ru has published an article about important amendments to the Tax Code that took effect on 19 August.  The changes ban the distortion of reported information for the purpose of tax avoidance and established indicators for lawful transactions as well as guidance in which the Federal Tax Service explains how to apply the Tax Code in respect of unjustified tax benefits.

Elena Kilinkarova, Counsel and Head of the Tax department at Maxima Legal was included in the experts who commented on the changes and noted that “the abandonment of a formal approach and the notion of "failure to exercise due diligence" should not be misleading and create the impression that the taxpayer's position has noticeably improved.  Through Article 54.1 of the Tax Code, when taking into account its interpretation, the Federal Tax Service has established sufficiently stringent conditions before a reduction in the tax base and the amount of the tax payable can be made."

For the full version of the article (in Russian) click here.