Russia: Major changes of tax legislation of the Russian Federation

2.1. The Tax Code of Russia is supplemented by provisions on the validity of the tax benefit since August 19, 2017. 

According to the new article 54.1 of the Tax Code of Russia, it is possible to reduce the base or the amount of tax if all the following conditions are met: 

- the organization has not distorted in the tax and accounting records or tax reports in-formation about the facts of economic life, on the objects of taxation; 

- the transaction or transaction is not made for the purpose of non-payment or incom-plete payment of tax, as well as its offset or return;

- the counterparty or the person to whom the obligation under the transaction or trans-action was transferred, performed it. 

In this situation there should be no claims to the taxpayer, even if the primary docu-ments were signed by an improper person, the counterparty violated the law on taxes and fees or it was possible to commit another legal transaction with the same economic result. Such circumstances are not considered as an independent basis for recognizing the tax benefit as unjustified. 

The new provisions concern taxpayers, payers of fees, insurance premiums, tax agents and are applied at inspections affective after August 19, 2017. 

2.2. The Federal Tax Service of Russia has established that additional data on com-panies operating in the territory of Russia will appear on its website beginning June 1, 2018 since August 8, 2017 

The Federal Tax Service of Russia was expected to establish the additional data for the verification of counterparties on July 25, 2017, but it was postponed. Now, the establishment of data is expected on June 1, 2018. 

Among the information available are: 

- outstanding tax liabilities and penalties; 

- tax offenses and liability for them; 

- special tax regimes; 

- participation in the consolidated group of taxpayers; 

- the average number of employees, paid taxes and fees, income and expenses of the company for accounting. 

Changes are provided by the Order of the Federal Tax Service of Russia of Russia of 27.07.2017 N MMV-7-14 / 582 @ 

2.3. The Russian government has updated the list of facilities and technologies with high energy efficiency since September 6, 2017. 

There are more facilities and technologies included in the list. The most notable is the inclusion of the following in the list: 

- compressors with efficiency for all compression levels of 87%; 

- turbochargers with efficiency for all compression levels of 88%. 

High energy efficiency facilities and technologies may qualify for accelerated depreciation for income tax. 

Changes are provided by the Decree of the Government of Russia of 25.08.2017 N 1006

2.4. Evasion of payment of insurance premiums shall be regarded as a crime since August 10, 2017. 

Criminal prosecution now threatens those who shy away from paying insurance premiums levied under the Tax Code of Russia. These payments are included in article 199 of the Criminal Code of Russia, which previously concerned only taxes and fees. The lenient punishment under this article, as before, is a fine of 100 thousand rubles, while, the most severe punishment is imprisonment for up to 6 years with a three-year deprivation of the right to hold certain posi-tions. 

For the first offence, the perpetrators may be exempted from criminal liability, if they paid all outstanding tax liabilities and penalties. 

Changes are provided by the Federal law from 29.07.2017 N 250-FZ.

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