Monitoring of the Federal Legislation dated 17.11.2005

Decision of the Constitutional Court of the Russian Federation No. 10-P of November 14, 2005 on the Case of Constitutionality of Provisions of Item 5 of Article 48 and Article 58 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, Item 7 of Article 63 and Article 66 of the Federal Law on the Elections of Deputies of the State Duma of the Federal Assembly of the Russian Federation Pursuant to the Appeal of the Human Right Commissioner in the Russian Federation

The Constitutional Court of the Russian Federation recognised the norm available in the interconnected provisions of the Federal Laws on the main guarantees of electoral rights and the right to participate in the referendum of the citizens of the Russian Federation and on the elections of the deputies of the State Duma of the Federal Assembly of the Russian Federation as implying a prohibition to carry out election agitation against all candidates at own expenses not complying with the Constitution of the Russian Federation.

In the absence in the electoral legislation of the formally defined procedure of implementation of the right for personal election agitation against all candidates at own expense by the citizens, the Constitutional Court of the Russian Federation also decided to take immediately measures to regulate the given procedure.

The Decision is entered into force immediately after annunciation.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/349 of November 9, 2005 on the Registration of Customs Duties and Fees for the Purchased Fixed Assets for the Purpose of the Profit Tax

Customs duties paid for the purchased fixed assets are qualified as expenses directly associated with the purchase of fixed assets and are included in the initial cost of the purchased fixed assets subject to amortisation according to the procedure specified in the Tax Code of the Russian Federation.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/344 of November 8, 2005

In the determination of the taxable base for the profit tax from organisations, labour remuneration expenses shall include the cost of free meals provided to employees only if such meals are envisaged in the labour contract.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-04-08/312 of November 7, 2005

Explains individual issues of recording in the tax declaration for the value added tax as tax exemptions of amounts of this tax transferred as advance payments for anticipated transportation services.

If the buyer changes the destination of advance payments subject to the zero VAT rate to qualify them for transportation services subject to the VAT rate of 18%, the organisation must present to the tax bodies refined tax declarations for the value added tax and the value added tax at the zero rate for the period where advance payments apply. Amounts of advance payments and the appropriate tax must be increased in the tax declaration for the value added tax and decreased in the tax declaration for the zero rate VAT. After the actual rendering of transportation services subject to the 18% tax rate, the mentioned amounts are recorded as exemptions in Section 2.1 "Calculation of the Total Amount of Tax" of the tax declaration for the value added tax.