Windfall tax for major companies to be introduced in Russia

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Monitoring of the Federal Legislation dated 2.08.2002

Decision of the Government of the Russian Federation No. 564 of July 25, 2002 on the Typical Rules of Trusteeship Control over the Closed-Type Shared Investment Fund

The typical rules of trusteeship control of the closed-type shared investment fund defines the terms of trusteeship control of this type of shared investment funds. They contain the list of information necessary for entering into the investment declaration of the fund that include the goals of the investment policy of the managing company, objects of investment, their composition and description, structure of the assets of the fund, as well as the description of the risks pertaining to investment activities.
The typical rules define also the rights and duties of the managing company controlling the fund and the rights of owners of investment shares. The Decision specifies that the property forming the closed fund is the common property of the founders of the trusteeship control - the owners of investment shares and is owned as shared property. The sharing of the property forming the fund and isolation of a share in kind is not permitted. The owners of investment shares of the closed-type investment fund assume the risk of losses pertaining to the change of the market cost of the property forming the fund.
The Decision regulates the main issues to be decided by the general meeting of the owners of investment shares. Defines the terms of fund discontinuation. In particular, if at the end of the fund building period, the cost of the property appeared to be less than the forming amount, the trusteeship control contract with all owners of investment shares is terminated.

Decision of the Supreme Court of the Russian Federation No. GKPI 2001-916 of July 10, 2002

The applicant challenged the legitimacy of Paragraph 2 of Item 12 of the Rules of keeping of the logbooks of received and drawn up invoices, books of purchase and books of sale in VAT payments.
According to the challenged provision, when the finished object of capital construction is registered, a single copy of invoice is drawn up for the amount of the tax calculated for the fulfilled construction and erection works for own consumption as of January 1, 2001 in the form of the difference between the amount of the tax for the cost of the given construction and erection works and the amount of the tax paid out to sellers for the purchased commodities (carried out works, rendered services) used to carry out these works for own consumption, the invoice being registered in the book of purchase.
According to Article 169 of the Tax Code of the Russian Federation, the invoice is the document serving as grounds for accepting of the declared amounts of VAT for deduction or reimbursement. The rules of VAT calculation when fulfilling construction and erection works for own consumption are fixed in the Tax Code of the Russian Federation. However, no norm of the Tax Code of the Russian Federation contains provisions stating that tax deductions must be applied "in the form of the difference".
In view of the above, the Supreme Court of the Russian Federation decided to recognize as illegal and invalid Paragraph 2 of Item 12 of the Rules of keeping of the logbooks of received and drawn up invoices, books of purchase and books of sale in VAT payments endorsed by the Decision of the Government of the Russian Federation No. 914 of December 2, 2000.

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