Monitoring of the Federal Legislation dated 24.11.2004

Ruling of the Constitutional Court of the Russian Federation of November 4, 2004 on the Request of the Russian Union of Industrialists and Entrepreneurs (Employers) on the Official Explanation of the Ruling of the Constitutional Court of the Russian Federation No. 169-O of April 8, 2004 on the Refusal to Accept for Examination the Appeal of the Limited-Liability Company Prom Line against Violation of the Constitutional Rights and Freedoms by the Provision of Item 2 of Article 171 of the Tax Code of the Russian Federation

The Constitutional Court emphasised that the Ruling No. 169-O of April 8, 2004 adopted on a particular case does not imply that the taxpayer may not enjoy the tax exemption in any case when the VAT amount has been paid by him to the supplier of commodities (works, services) within the price, in particular, in cash (including the cases before the moment of execution of the duty to return the loan by the taxpayer). Denial of the tax exemption may occur if the process of sale of commodities (works, services) was not accompanied by the associated with this right duty to pay the VAT to the budget in the monetary form. If the taxpayer does not bear real expenses in the payment of the VAT amounts put forward by the supplier, i.e. the property purchased under a commutative transaction is not paid for by the moment of transfer to the supplier in payment for the accrued tax amounts or is not paid for completely, and clearly will not be paid for in the future, the right for the exemption for the tax amounts put forward to the taxpayer and paid by him at the purchase of commodities (works, services) may not be implemented.

Disputes on the right for the tax exemption pertaining to the duty to pay the tax (including the cases when the tax bodies change the legal qualification of the transactions concluded by the taxpayer with third parties) as being associated with investigation and determination of the actual circumstances of a particular case fall in the sphere of reference of the courts of arbitration.

Decision of the Government of the Russian Federation No. 670 of November 22, 2004 on the Distribution of the Grants from the Federal Fund of Financial Support of the Subjects of the Russian Federation

Provides the method of distribution of the grants from the Federal Fund of Financial Support of the Subjects of the Russian Federation specifying the procedure of calculation of the level of estimated budget security of the subjects of the Russian Federation, calculation of the total volume of allocated grants, tax potential and budget expenses indices.

The Decision is entered into force from January 1, 2005.

Order of the Ministry of Finance of the Russian Federation No. 94n of October 26, 2004 on the Endorsement of the Procedure of Suspension by the Federal Treasury Bodies of Operations on the Accounts Opened for the Federal Institutions in the Institutions of the Central Bank of the Russian Federation and Credit Organisations (Branches) for the Registration of Operations with Resources Obtained from Entrepreneurial and Other Profitable Activities

Defines the rules of interaction of the Federal Treasury bodies with institutions of the Bank of Russia and credit organisations (branches) pertaining to suspension of operations on the accounts opened for the federal institutions in the institutions of the Bank of Russia on the Balance Account 40503 "Accounts of Federally Owned Enterprises. Non-Commercial Organisations" and credit organisations (branches) on the Balance Account 40503 "Accounts of Federally Owned Organisations. Non-Commercial Organisations" for the registration of operations with resources obtained from entrepreneurial and other profitable activities.

Registered in the Ministry of Justice of the Russian Federation on November 23, 2004. Reg. No. 6130.

Direction of the Central Bank of Russia No. 1510-U of October 28, 2004 on the Amendments to the Direction of the Bank of Russia No. 1260-U of March 24, 2003 on the Procedure for Bringing in Compliance the Amount of the Registered Capital and the Amount of Own Resources (Capital) of Credit Organisations

The procedures specified in the Direction of the Bank of Russia No. 1260-U of March 24, 2003 do not apply to credit organisations where the amount of own resources (capital) became lower than the amount of the registered capital as defined in the constituent documents if less than two years elapsed from the day of issue of the license for bank operations to the credit organisation.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.
Registered in the Ministry of Justice of the Russian Federation on November 22, 2004. Reg. No. 6127.