Monitoring of the Federal Legislation dated 3.11.2006

Order of the Ministry of Economic Development of the Russian Federation No. 303 of September 29, 2006 on the Endorsement of the Regulation on the Procedure for Carrying out Expert Evaluation of the Report of Assessment of Securities, on the Requirements and Procedure of Selection of the Self-Regulating Organisation of Assessors Carrying out Expert Evaluation <br>

The Federal Law No. 7-FZ of January 5, 2006 introduces the duty of the person owning as of July 1, 2006 more than 95% of the total number of ordinary stocks and preference stocks of the open-type joint stock company to buy out the rest of the stocks and securities converted into such stocks at the demand of their holders. A similar rule also applies to the persons who had more than 85% of the stocks of the open-type joint-stock company as of the mentioned date and became later the holders of 95% of the packet of stocks. In the above cases, the cost of the purchased securities must be determined by an independent assessor and confirmed by the self-regulating organisation of assessors.

The endorsed Regulation regulates the procedure of carrying out of expert evaluation of the report of assessment of securities, as well as the requirements and procedure of selection of the self-regulating organisation of assessors carrying out the expert evaluation.

The expert evaluation may be carried out by the self-regulating organisation of assessors meeting simultaneously the following conditions: presence in the organisation of at least 300 persons entitled to carry out assessment activities; presence of a permanent structural division of the organisation in charge of appropriate expert evaluations; presence in the given structural division of persons with a state diploma of professional education in the sphere of assessment activities, length of work in the sphere of assessment activities of at least 5 years who signed at least 10 valid reports of assessment of businesses or securities; presence of an internal document of the organisation on expert evaluations.

The Order defines the composition of documents submitted by the self-regulating organisation to the request of the party ordering the expert evaluation, the subject matter of the expert evaluation and the content of the expert statement.

Registered in the Ministry of Justice of the Russian Federation on October 31, 2006. Reg. No. 8427.

Letter of the Federal Tax Service No. ShT-6-03/1027 of October 23, 2006 on the Application of the Agreement with the Republic of Belarus <br>

Provides explanations on the application of the Agreement between the Government of the Russian Federation and the Government of the Republic of Belarus on the principles of collection of indirect taxes to operations of sale of commodities between economic subjects of the Russian Federation and the Republic of Belarus in cases of their participation in exhibitions.

If the taxpayer of the state of one side of the given Agreement has a contract for supplies of commodities with the taxpayer of the state of the other side envisaging that the commodity as of the moment of the beginning of delivery (transportation) is on the territory of the country of exporter, and the terms of the given contract envisage that the commodity participates in exhibitions on the territory of the country of the importer as a prototype, the economic operation of export (import) of such commodities is regarded in each of the countries as export (import) of commodities respectively.

Letter of the Federal Tax Service No. ShT-15-03/1137 of October 17, 2006 on the Value Added Tax

In the determination of the amount of the value added tax due to the budget when the re-seller taxpayer carried out operations of sale of second-hand automobiles purchased from persons not being VAT payers, there appears to be no right for tax exemptions. The mentioned procedure of VAT calculation applies not only to operations of sale of second-hand imported automobiles purchased from persons not being VAT payers, but also of sale of other commodities purchased from these persons.

According to the Federal Tax Service of Russia, the change of the procedure of calculation of the value added tax in operations of sale of second-hand imported automobiles does not affect the level of prices for the given products, as well as the buying capacity of new automobiles and an active renovation of the automobile fleet.