Monitoring of the Federal Legislation dated 25.10.2006

Decision of the Government of the Russian Federation No. 613 of October 17, 2006 on the Federal Targeted Program В“Research and Projects in Priority Directions of Development of the Science and Technology Complex of Russia for the Years 2007-2012

Endorses the federal targeted program В“Research and Projects in Priority Directions of Development of the Science and Technology Complex of Russia for the Years 2007-2012.

The main tasks of the program are implementation of priority directions of development of science, technologies and engineering in the Russian Federation on the basis of large-scale projects of commercialisation of technologies, concentration of resources in promising scientific and technical directions on the basis of expansion of use of the mechanisms of governmental and private partnership, providing for the inflow of young specialists in the sphere of research and development, development of the leading scientific schools, promotion of small enterprises in the scientific and technical sphere, their integration in the system of scientific and technical cooperation.

In the framework of implementation of the program, it is expected to create a scientific and technical basis and develop competitive technologies in the sphere of nano systems and materials, information and telecommunication systems, rational use of natural resources, power supplies and power conservation. The program envisages investments in the development of the material and technical bases of leading scientific organisations and higher educational institutions engaged in research projects, including the reconstruction and technical modernisation of these organisations.

The measures of the program include also development of the information infrastructure of storage and transfer of new knowledge, in particular, providing access for the leading scientific and educational centres to the world resources of scientific and technical information, further development of the network of collective-use centres of scientific equipment, providing to potential investors and other interested parties information on the results of perspective scientific research and design works obtained in the framework of the program, as well as on innovation projects and their commercialisation.

The total volume of financing of the program makes Rbl 194.89 billion. To finance the program, both resources of the federal budget and extra-budgetary sources will be attracted.

Program implementation must bring about a transfer of the Russian economy to a stable innovative development, building of a scientific and technological potential in crucial (i.e. most promising) technologies as a basis for the technical modernisation of the sectors of the Russian economy and providing national security, expansion of the circle of innovation-active companies through the demonstration effect of the implementation of the program.

Direction of the Central Bank of Russia No. 1734-U of October 20, 2006

From October 23, 2006, the rate of refinancing of the Bank of Russia is fixed in the amount of 11.0% annual. This is the second reduction of the rate in 2006. From June 26, 2006, the mentioned rate was fixed in the amount of 11.5% annual by the Direction of the Central Bank of Russia No. 1696-U of June 23, 2006.

Direction of the Central Bank of Russia No. 1731-U of October 19, 2006 on the Adjustment of Individual Acts of the Bank of Russia

Invalidates the Direction of the Bank of Russia No. 441-U of December 15, 1998 having defined the procedure of carrying out of cash operations with old monetary signs in credit organisations.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia. The text of the Direction has been published in the Herald of the Bank of Russia on October 25, 2006, No. 57.

Order of the Central Bank of Russia No. OD-524 of October 16, 2006 on the Correction Coefficients of the Bank of Russia

To provide for acceptance as a security for the credits of the Bank of Russia granted in compliance with the Regulation of the Bank of Russia No. 236-P of August 4, 2003 of individual bonds of the Impexbank, it is necessary to adjust their market cost using the correction coefficient 0.75.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-02/239 of October 12, 2006

Explains the procedure of determination and confirmation of the cost of the amortised property handed over from a foreign organisation to the registered capital of the Russian organisation for the purposes of calculation of the profit tax.

When natural persons and foreign organisations transfer property (proprietary rights), its cost (residual cost) is acknowledged to be documentary confirmed expenses of its purchase (creation) taking into account the amortisation (tear and wear) calculated for the profit (income) taxation purpose in the state where the handing over party is a resident, however, not greater than the market cost of this property (proprietary rights) as confirmed by an independent assessor in compliance with the legislation of the mentioned state.

In the absence of the institute of independent assessors on the territory of the state where the foreign founder or the producer of the amortised property is a resident, if the countries are different, the cost of such property may be confirmed by an independent assessor of another state. In this case, the independent assessor of the property may be an active member of any foreign association of professional assessors (for example, American Society of Appraisers) providing assessment of property in compliance with international standards.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-02-07/1-272 of October 4, 2006

On the issue of offsetting of the tax erroneously transferred by the taxpayer as a redemption of the arrears accrued because of the error, the Ministry of Finance emphasised that the new wording of the Tax Code entering into force from January 1, 2007 envisages the taxpayer right to submit application of the available error with attached documents confirming the payment of the mentioned tax by him and its transfer to the budget system of the Russian Federation to the appropriate account of the Federal Treasury containing a request to verify the grounds, type and payment designation, the tax period or taxpayer status.

At present, disputes over accrued penalties in cases of erroneously indicated requisites in the payment documents are resolved by courts proceeding from the legal nature of penalties and the consequences of committed errors for the budget.