Windfall tax for major companies to be introduced in Russia
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Daily Monitoring of the Legislation
Monitoring of the Federal Legislation dated 21.06.2006
Decision of the Government of the Russian Federation No. 380 of June 19, 2006 on the Registration of the Volumes of Production and Circulation (Except for Retail Trade) of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products
Endorses the Regulation on the registration of the volumes of production and circulation (except for retail trade) of ethyl alcohol, alcoholic and alcohol-containing products.
According to the mentioned Regulation, registration of the volume of production shall be arranged in organisations producing ethyl alcohol, alcoholic and alcohol-containing edible products, as well as non-edible alcohol-containing products with the content of ethyl alcohol greater than 40% of the volume of the finished product, using technical means of registration and transfer of information on the volume of production and circulation of the mentioned products to the Joint State Automatic Information System.
Registration of the volume of circulation shall be arranged in organisations where they have circulation of the mentioned products (except for retail trade) using the above technical means.
The Regulation defines the main figures of registration of the volumes of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products, their measuring and registration procedure.
The validity of registration of the volumes of production (circulation) of ethyl alcohol, alcoholic and alcohol-containing products is determined taking into account the losses in production (circulation) of the given products within the limits of natural losses.
According to the mentioned Regulation, registration of the volume of production shall be arranged in organisations producing ethyl alcohol, alcoholic and alcohol-containing edible products, as well as non-edible alcohol-containing products with the content of ethyl alcohol greater than 40% of the volume of the finished product, using technical means of registration and transfer of information on the volume of production and circulation of the mentioned products to the Joint State Automatic Information System.
Registration of the volume of circulation shall be arranged in organisations where they have circulation of the mentioned products (except for retail trade) using the above technical means.
The Regulation defines the main figures of registration of the volumes of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products, their measuring and registration procedure.
The validity of registration of the volumes of production (circulation) of ethyl alcohol, alcoholic and alcohol-containing products is determined taking into account the losses in production (circulation) of the given products within the limits of natural losses.
Decision of the Presidium of the Higher Arbitration Court of the Russian Federation No. 15326/05 of May 16, 2006
The Presidium of the Higher Arbitration Court of the Russian Federation revoked available court rulings recognising the absence of reasons to accrue penalties for VAT payments with the taxpayer, since his right for the zero percent tax rate was confirmed by the tax body, which excludes arrears in tax payments.
It is explained that Item 9 of Article 165 of the Tax Code of the Russian Federation specifies that if 180 days after the date of release of commodities by the regional customs bodies under the export or transit customs regime, the taxpayer did not present documents envisaged in Article 165 of the Tax Code of the Russian Federation, operations of sale of commodities (carrying out works, rendering services) are subject to taxation at the rate of 10% or 18% respectively. Since the tax declaration for the value added tax at the rate of 0% and the documents mentioned in Item 1 of Article 165 of the Tax Code of the Russian Federation were submitted by the taxpayer with expired 180-day limit, there emerges the duty to pay the value added tax at the rate of 10%. The failure to fulfil this duty brought about the arrears in VAT payments, which serves as grounds to accrue penalties in pursuance of Article 75 of the Tax Code of the Russian Federation. Confirmation by the tax body of the reasons of application of the zer o percent rate by the taxpayer means that the penalties must be accrued beginning with the 181st day and to the day of submission of the tax declaration for the 0% rate together with the documents envisaged in Article 165 of the Tax Code of the Russian Federation.
It is explained that Item 9 of Article 165 of the Tax Code of the Russian Federation specifies that if 180 days after the date of release of commodities by the regional customs bodies under the export or transit customs regime, the taxpayer did not present documents envisaged in Article 165 of the Tax Code of the Russian Federation, operations of sale of commodities (carrying out works, rendering services) are subject to taxation at the rate of 10% or 18% respectively. Since the tax declaration for the value added tax at the rate of 0% and the documents mentioned in Item 1 of Article 165 of the Tax Code of the Russian Federation were submitted by the taxpayer with expired 180-day limit, there emerges the duty to pay the value added tax at the rate of 10%. The failure to fulfil this duty brought about the arrears in VAT payments, which serves as grounds to accrue penalties in pursuance of Article 75 of the Tax Code of the Russian Federation. Confirmation by the tax body of the reasons of application of the zer o percent rate by the taxpayer means that the penalties must be accrued beginning with the 181st day and to the day of submission of the tax declaration for the 0% rate together with the documents envisaged in Article 165 of the Tax Code of the Russian Federation.
Letter of the Department of Regulation, State Financial Control, Audit, Accounting and Reporting of the Ministry of Finance of the Russian Federation No. 07-05-06/138 of June 5, 2006
In cases of reorganisation under the decision (agreement) of the founders, assessment of property handed over in the course of the reorganisation at the current market value may be made by the reorganised organisation when drawing up the act of transfer.
In the final accounting reports of the incorporated organisation, the property is recorded in assessment proceeding from the rules specified in the appropriate provisions on accounting work.
Expenses of the newly created and reorganised organisations include the cost (residual cost) of property, proprietary rights that have monetary value and/or obligations received according to succession procedure in the course of reorganisation of legal entities that were purchased (created) by the reorganised organisations before the date of termination of the reorganisation. The cost of property, proprietary rights that have monetary value is determined according to information and documents of tax records of the transferring party as of the date of transfer of the right for the mentioned property, proprietary rights.
Expenses of the newly created and reorganised organisations shall also include expenses or losses made (suffered) by the reorganised organisations where they were not taken into account while building the taxable base. For taxation purposes, the mentioned expenses are taken into account by successor organisations according to the procedure and on conditions envisaged in Chapter 25 of the Tax Code of the Russian Federation, which does not envisage reassessment of property.
Thus, reassessment of property made in the course of the reorganisation in the form of incorporation is not taken into account for taxation purposes.
In the final accounting reports of the incorporated organisation, the property is recorded in assessment proceeding from the rules specified in the appropriate provisions on accounting work.
Expenses of the newly created and reorganised organisations include the cost (residual cost) of property, proprietary rights that have monetary value and/or obligations received according to succession procedure in the course of reorganisation of legal entities that were purchased (created) by the reorganised organisations before the date of termination of the reorganisation. The cost of property, proprietary rights that have monetary value is determined according to information and documents of tax records of the transferring party as of the date of transfer of the right for the mentioned property, proprietary rights.
Expenses of the newly created and reorganised organisations shall also include expenses or losses made (suffered) by the reorganised organisations where they were not taken into account while building the taxable base. For taxation purposes, the mentioned expenses are taken into account by successor organisations according to the procedure and on conditions envisaged in Chapter 25 of the Tax Code of the Russian Federation, which does not envisage reassessment of property.
Thus, reassessment of property made in the course of the reorganisation in the form of incorporation is not taken into account for taxation purposes.
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