Windfall tax for major companies to be introduced in Russia

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Daily Monitoring of the Legislation

Monitoring of the Federal Legislation dated 25.02.2004

Decision of the Constitutional Court of the Russian Federation of February 25, 2004 on the Case of Constitutionality of Item 10 of Article 75 of the Federal Law on the Main Guarantees of Electoral Rights and the Right to Participate in the Referendum of the Citizens of the Russian Federation and Part 1 of Article 259 of the Code of Civil Procedures of the Russian Federation Pursuant to the Request of the Supreme Court of the Russian Federation

The Constitutional Court of the Russian Federation recognised as not complying with the Constitution of the Russian Federation the provision of Item 10 of Article 75 of the Federal Law on the main guarantees of electoral rights and the right to participate in the referendum of the citizens of the Russian Federation and Part 1 of Article 259 of the Code of Civil Procedures of the Russian Federation stating that if the violations mentioned in the appeal or application on the decisions and actions (failure to act) violating electoral rights of citizens and the right of citizens to participate in the referendum affect a significant number of citizens, or the violation acquired a special public significance because of other circumstances, the Central Electoral Commission of the Russian Federation may apply to the Supreme Court of the Russian Federation that has to consider the appeal.

The Decision is entered into force immediately after annunciation.

Decision of the Constitutional Court of the Russian Federation of February 24, 2004 on the Case of Constitutionality of Individual Provisions of Articles 74 and 77 of the Federal Law on Joint-Stock Companies (in the Wording of December 26, 1995) Regulating the Procedure of Consolidation of Placed Stocks of the Joint-Stock Company and Redemption of Fractional Stocks Pursuant to the Appeals of Citizens, a Legal Entity and Request of the Oktyabrsky Regional Court of the City of Penza

The Constitutional Court of the Russian Federation recognised as not contradicting the Constitution of the Russian Federation interconnected provisions of Paragraph 2 of Item 1 of Article 74 and Article 77 of the Federal Law on joint-stock companies (in the wording of May 24, 1999) stating that in case of forming of fractional stocks during consolidation, the latter must be redeemed by the company at the market value. The given provisions imply taking into account the rights and legal interests of the holders of fractional stocks by applying appropriate legal procedures and an efficient judicial control over the decisions taken by the Board of Directors (Supervising Board) and the general meeting of stock-holders. The revealed constitutional and legal meaning is obligatory to all and excludes any other their interpretation in the judicial practice.

Decisions on the cases of stock-holder citizens based on the mentioned provisions in the interpretation other than their constitutional and legal meaning revealed by the Constitutional Court of the Russian Federation must be revised according to established procedure.

The Decision is entered into force immediately after annunciation.

Federal Law No. 4-FZ of February 22, 2004 on the Amendment to Article 25 of the Federal Law on the Military Duty and the Military Service

Sets forth that the citizens living in individual regions of the Far North or individual localities of the similar status are called up for the military service from May 1 through June 30 or from November 1 through December 31. The list of the mentioned regions and localities, as well as the draft time for the citizens living in these regions and localities, are defined by the General Headquarters of the Armed Forces of the Russian Federation.

Earlier, the draft in the given category applied to the citizens living only in individual regions of the Far North according to the list defined by the General Headquarters of the Armed Forces of the Russian Federation only from May 1 through June 30. Other citizens are called up for the military service according to the commonly accepted procedure.

The Federal Law is entered into force from the day of its official publication.

Decree of the President of the Russian Federation No. 264 of February 24, 2004 on the Government of the Russian Federation

From February 24, 2004, sends the Government of the Russian Federation into retirement. The Government continues to execute their functions before the forming of the new composition of the main executive body of power of the country. The duties of the Chairman of the Government of the Russian Federation are vested temporarily in the Deputy Chairman of the Government of the Russian Federation V.B.Khristenko.

Decision of the Government of the Russian Federation No. 99 of February 21, 2004 on the Organisation of the Transfer of the Forestry Lands into Non-Forestry Ones for Their Use for the Purposes Other Than the Forestry Industry, Use of the Forestry Fund, As Well As the Transfer of the Lands of the Forestry Fund into Other Land Categories

As an exception, permits the bodies of state power to transfer the forestry lands into non-forestry ones and to transfer the lands of the forestry fund into other land categories according to the available in the present time procedure of transfer of the forestry lands into non-forestry ones for their use for the purposes other than the forestry industry, use of the forestry fund, and/or withdrawal of the lands of the forestry fund in the presence of the positive statement of the state ecological expertise while observing the requirements of the forestry and land legislation of the Russian Federation.

Decision of the Government of the Russian Federation No. 98 of February 21, 2004 on the Amendments to the Customs Tariff of the Russian Federation Pertaining to the Import of Individual Types of Technological Equipment to the Customs Territory of the Russian Federation

For 9 months introduces the rates of the import customs duties for certain types of equipment for drink and commodity packing, as well as for certain types of self-propelled mechanisms and machine-tools using electric discharge processes.

The Decision is entered into force one month after the day of its official publication.

Order of the Social Insurance Fund of the Russian Federation and the Ministry of Public Health of the Russian Federation No. 18/29 of January 29, 2004 on the Endorsement of the Instruction on the Procedure of Providing Blank Disability Sheets, Their Registration and Storage

Defines the procedure of providing blank disability sheets for the medical organisations licensed to carry out works and render appropriate medical aid services, including the temporary disability expertise, as well as their registration and storage. Provides the forms necessary for the mentioned document turnover.

The making of the blank disability sheets is vested in the Social Insurance Fund of Russia. All medical organisations must submit to the pubic health management bodies on the quarterly basis before the 5th of the month following the reported quarter the request reports to obtain blank disability sheets regardless of the demand for these blank forms.

The blank disability sheets are strict-reporting documents and must be stored in special rooms, safes or in specially made iron-coated cabinets with safe internal or hanging locks. The rooms, safes, cabinets used to store the blank forms must be locked and sealed. The blank forms must be registered in accounting records on a systematic basis on off-balance accounts.

Registered in the Ministry of Justice of the Russian Federation on February 19, 2004. Reg. No. 5573.

Decision of the Higher Arbitration Court of the Russian Federation No. 14770/03 of January 22, 2004

The applicant challenged the provisions of the Order of the Ministry of Taxation of Russia No. BG-3-22/135 of March 26, 2003 amending the logbook of incomes and expenses of organisations and independent entrepreneurs using the simplified system of taxation and the procedure of recording of economic operations in it. According to the amendments, the taxpayers using the simplified system of taxation must record in the logbook of incomes and expenses not only the figures of their activities necessary for the calculation of the taxable base and the amount of the uniform tax, but also keep records of incomes and expenses other than those affecting the mentioned calculation.

The Higher Arbitration Court of the Russian Federation recognised the mentioned Order of the Ministry of Taxation as not complying with the Tax Code of the Russian Federation and invalid inasmuch as it pertains to independent entrepreneurs.

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