The Ministry of Finance and the Federal Tax Service are seeking to improve the instruments aimed at preventing tax evasion. They are constantly working on the quality tax audits and increasing their efficiency.
In this context, tax authorities might be granted a right to fix the property of the taxpayers before the end of tax audits in order to prevent the transfer of the taxpayer’s assets, if they identify the risk of tax evasion.
As of today, interim measures can be applied only upon the end of tax audit, when the decision on the taxpayer’s liability is made. They include a ban on the transfer (including as a pledge) of the taxpayer’s property without the consent of the tax authority and blocking of the taxpayer’s bank accounts. As tax audits may be time-consuming, certain mala fide taxpayers may dispose of the assets, withdraw the capital and go bankrupt before tax audits end.
The initiative to expand the tax authorities’ right to use preliminary interim measures during the tax audits received negative comments of business society that perceives it as an additional instrument of pressure on the taxpayers and discrimination of the taxpayers’ rights.
NAZALI TAX & LEGAL