Monitoring of the Federal Legislation dated 5.04.2004

Ruling of the Constitutional Court of the Russian Federation No. 43-O of February 5, 2004 on the Refusal to Accept for Consideration the Appeal of Citizen N.G.Talankin against Violation of His Constitutional Rights by Provisions of Item 2 of Article 56 of the Tax Code of the Russian Federation

The applicant challenged the constitutionality of Item 2 of Article 56 of the Tax Code of the Russian Federation stating that the taxpayer may refuse to use the exemption or suspend it for one or several tax periods if otherwise is not envisaged in the Code.

The Constitutional Court has ruled that the voluntary refusal of the taxpayer from the tax exemption before its expiry hampers the mechanism of calculation and payment of the value added tax, thus blocking the implementation of the constitutional duty to pay the legally fixed taxes and fees and impairs significantly tax control. The taxpayer exempted from the duty pertaining to the calculation and payment of the value added tax may not include the amount of this tax in the price of the commodity.

Order of the Ministry of Taxation of the Russian Federation No. BG-3-23/192@ of March 12, 2004 on the Endorsement of the Procedure of Issue by the Tax Bodies of the Documents of Absence of Debts in the Payment of Taxes by Natural Persons Expatriating from the Russian Federation

When expatriating from the Russian Federation, the applicant natural persons shall get the document from the tax body of the absence of debts in the payment of taxes.

The natural person having lived earlier on the territory of the Russian Federation (RSFSR) shall get the document of absence of debts in the payment of taxes in the tax body at the most recent place of residence against the written application drawn up in free form. The tax bodies shall consider presented documents within ten days and take the decision to issue the certificate of absence of debts in the payment of taxes.

If case of available debts, the tax body shall notify the applicant in writing of the impossibility to issue the certificate, indicating the reasons of the refusal.

Registered in the Ministry of Justice of the Russian Federation on April 1, 2004. Reg. No. 5698.

Decision of the Federal Commission for Securities Market No. 04-3/ps of February 10, 2004 on the Regulation of Activities of Specialised Depositaries of Joint-Stock Investment Funds, Shared Investment Funds and Non-State Pension Funds

Lists the requirements to activities of specialised depositaries of joint-stock investment funds, shared investment funds and non-state pension funds, as well as specialised depositaries having concluded contracts for services to the Pension Fund or a non-state pension fund being an insurer under obligatory pension insurance.

Defines the procedure of registration of the property and particulars of storage and registration of the rights for securities. Lists control functions of the specialised depositary, terms of implementation of the functions of a specialised depositary by its branch, as well as defines the requirements to the schedules and documents.

Specialised depositaries are ordered to bring their activities in compliance with the requirements of the endorsed Regulation within one month.

Registered in the Ministry of Justice of the Russian Federation on March 29, 2004. Reg. No. 5693.