Monitoring of the Federal Legislation dated 13.11.2006

Federal Law No. 190-FZ of November 9, 2006 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of Romania on the Status of Russian Military Burials on the Territory of Romania and Romanian Military Burials on the Territory of the Russian Federation

Ratifies the Agreement between the Government of the Russian Federation and the Government of Romania on the status of Russian military burials on the territory of Romania and Romanian military burials on the territory of the Russian Federation.

The Agreement was signed on November 8, 2005 in Bucharest to create a legal basis to ensure a proper care of the Russian military burials on the territory of Romania. The Agreement defines the procedure of granting (free of charge for permanent (unlimited) use) of land plots for the Russian and Romanian military burials, exhumation and re-burying of remnants, providing for protection and preservation of the burials. The notion of "military burials" includes in the Agreement also the monuments and other memorial structures including those located out of places of entombment of the deceased.

Implementation of the Agreement will require allocation of resources on the annual basis for the works of maintenance and care for the Romanian military burials on the territory of the Russian Federation. Similar obligations pertaining to Russian military burials on its territory are assumed by the Romanian side.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-02-07/1-294 of October 26, 2006

Taxpayers possessing land plots on the proprietary basis, granted for permanent (unlimited) use or as life-time inherited possession must pay the land tax to the budget of the municipal formation at the place of location of the land plots. The tax declarations for the land tax (estimates of advance payments) must be submitted to the tax body at the place of location of the land plots while indicating the OKATO code of the municipal formation at the place of location of these land plots.

The taxable base in the calculation of the land tax for the land plots located on the territories of several municipal formations (linear objects) must be determined for the area of the land plot located on the territory of the appropriate municipal formation as a share of the cadastral cost of the land plot in proportion to the share of the area occupied by the land plot on the territory of the appropriate municipal formation. If the taxpayer cannot determine independently the size of the land plot (under the linear object) on the territory of the municipal formation, it is recommended to apply to the bodies of the Federal Agency of Cadastre of Objects of Immovable Property.

If the object of immovable property subject to taxation is actually located on the territories of different subjects of the Russian Federation or on the territory of the subject of the Russian Federation and in the territorial sea of the Russian Federation, the taxable base for the mentioned object of immovable property is determined separately and is accepted in the tax calculation in the appropriate subject of the Russian Federation in proportion to the balance cost of the object of immovable property on the territory of the appropriate subject of the Russian Federation. The organisation running on its balance the immovable property actually located on the territories of different subjects of the Russian Federation shall determine independently the share of the cost of property falling on the appropriate subject of the Russian Federation as of the reporting date. The share of the cost of property actually located on the territories of the appropriate subjects of the Russian Federation is calculated proceedi ng from the physical or cost figures of the given object.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/224 of October 23, 2006

The debt of the organisation subject to the bankruptcy proceedings and included in the creditor claims register may not be recognised as desperate for the profit tax purposes because of expiry of the period of limitation and is not registered in expenses when generating the taxable base for the profit tax before the end of the bankruptcy proceedings.

For taxation purposes, the bank as a bankruptcy creditor may abstain from accruing interest for the granted credits from the date of opening of bankruptcy proceedings for the borrowers recognised bankrupt until the decision is taken in the bankruptcy proceedings or the date of the actual liquidation of the debtor.