Monitoring of the Federal Legislation dated 10.11.2004

Federal Law No. 135-FZ of November 9, 2004 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Belarus on the Joint Logistic Support of the Regional Group of Troops (Forces) of the Armed Forces of the Russian Federation and the Armed Forces of the Republic of Belarus

Ratifies the Agreement signed in Moscow on October 25, 2002. The Agreement regulates the issues of logistic support of the regional group of troops (forces) of the Armed Forces of the Russian Federation and the Armed Forces of the Republic of Belarus located on the territory of the provinces of the Russian Federation adjacent to the state border of the Republic of Belarus and the territory of the Republic of Belarus while solving the tasks in both peace time and war time.

Federal Law No. 134-FZ of November 9, 2004 on the Ratification of the Agreement between the Government of the Russian Federation and the International Finance Corporation on the Permanent Representation of the International Finance Corporation in the Russian Federation

Ratifies the Agreement signed in Hong Kong on September 24, 1997. The Agreement envisages certain immunities for the International Finance Corporation and its permanent representation. In particular, the permanent representation, its assets, property, incomes, as well as individual operations and transactions are exempted from any taxes (including the obligatory deductions, in particular, the social ones pertaining to its officials and employees) and all customs duties.

Federal Law No. 133-FZ of November 9, 2004 on the Ratification of the Agreement between the Government of the Russian Federation and the International Bank of Reconstruction and Development on the Permanent Representation of the International Bank of Reconstruction and Development in the Russian Federation

Ratifies the Agreement signed in Washington on September 29, 1996. The Agreement specifies certain immunities and guarantees for the International Bank of Reconstruction and Development and its permanent representation, in particular, exemption from any taxes, financial exemptions, as well as protection of rooms against interference or damage.

Federal Law No. 132-FZ of November 9, 2004 on the Ratification of the Agreement between the Government of the Russian Federation and the International Monetary Fund on the Permanent Representation of the International Monetary Fund in the Russian Federation

Ratifies the Agreement signed in Hong Kong on September 24, 1997. The Agreement specifies privileges and immunities for the Fund and its permanent representation, as well as its officials.

Federal Law No. 129-FZ of November 4, 2004 on the Amendments to Article 117 of the Criminal Execution Code of the Russian Federation

The procedure of application of penalties to the convicts in detention is extended to include the provision requiring to obtain written explanations from the convict before applying the penalties. The convicts unable to provide a written explanation may enjoy assistance of the administration of the corrective institution. In case of a refusal of the convict to provide explanations, appropriate act is drawn up.

Decision of the Government of the Russian Federation No. 608 of November 6, 2004 on the Qualification Requirements to the Head of the Fiscal Body of the Subject of the Russian Federation and the Head of the Fiscal Body of the Local Administration

Specifies qualification requirements to the head of the fiscal body of the subject of the Russian Federation (entered into force from January 1, 2005 in the presence of certain conditions) and the head of the fiscal body of the local administration (entered into force from January 1, 2006).

Qualification requirements to the heads of fiscal bodies pertain to their professional training, length of work and experience in the occupation, knowledge of the Constitution of the Russian Federation, federal laws, constitutions, charters, laws of the subjects of the Russian Federation and other normative legal acts as applied to the execution of the appropriate official duties.

Order of the Ministry of Internal Affairs of the Russian Federation No. 687 of October 27, 2004 on the Prolongation of the Organisational and Technical Experiment in the Working out of the Optimal Forms and Methods of Periodic Checks of the Employees of Legal Entities Featuring Chartered Tasks of Fitness for Actions Pertaining to the Use of Fire Arms

The organisational and technical experiment arranged in pursuance of the Order of the Ministry of Internal Affairs of Russia No. 963 of October 8, 2002 is prolonged until January 1, 2007 and applies, beside Moscow, also to the Moscow Province.

Registered in the Ministry of Justice of the Russian Federation on November 4, 2004. Reg. No. 6101.

Letter of the Ministry of Finance of the Russian Federation No. 07-05-13/10 of October 20, 2004

If incorrect recording of economic operations is revealed by the organisation in the current reporting period on the accounts of the previous year, corrections in the accounting work and reports for the previous reporting year (after endorsement of the accounting reports according to established procedure) are not entered. The return of excessive amounts for the leave are recorded in the accounting work as a reverse entry for the mentioned amount (in red ink) on the debit of accounts of production expenses and the credit of the account of personnel labour remuneration. The amount received by the cash department of the organisation from the dismissed employee is recorded on the debit of the cash account in correspondence with the credit of the personnel labour remuneration account.

Letter of the Ministry of Taxation of the Russian Federation No. 02-3-07/151 of September 15, 2004 on the Refined Declarations for the Profit Tax at the Place of Location of Liquidated Separate Divisions of the Organisation

When refining the tax declaration, the amount of the profit tax must be distributed (redistributed) proceeding form the number of separate divisions and their share in the taxable base on the whole for the taxpayer having been declared in the initial tax declaration for the reported period where an error occurred.

In this case, to offset the profit tax (return the tax from the budget), the fact of liquidation of the separate division of the legal entity by the moment of submission of the refined tax declaration is of no significance. Refined declarations for the profit tax are submitted to the same tax bodies where the taxpayer (parent legal entity) incorporating separate divisions was registered as of the moment of submission of the initial tax declaration.