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Daily Monitoring of the Legislation

Monitoring of the Federal Legislation dated 13.10.2006

Letter of the Federal Agency for Construction and the Housing and Communal Complex No. SK-4312/02 of October 12, 2006 on the Indices of Change of the Estimated Cost in the IV Quarter of 2006



Works out the indices of change of the estimated cost of construction and installation works and by items of expenses for the IV quarter of 2006 by the subjects of the Russian Federation for the objects financed at the expense of resources of the federal budget.

The mentioned indices have been worked out on the basis of reported information of the regional bodies of price forming in construction for the III quarter of 2006 taking into account the forecasted inflation for the IV quarter of 2006. They include a full set of construction and installation works and are intended for major estimates of the cost of construction using the basic indices method, preparation of tender documentation and general economic estimates in the investment sphere.

The indices for construction and installation works include overhead expenses and profit estimates. Overhead expenses are assumed with a reduction coefficient of 0.94 taking into account the reduction from January 1, 2005 of the rate of the uniform social tax.

Letter of the Ministry of Finance of the Russian Federation No. 03-06-01-02/35 of September 6, 2006 on the Property Tax from Organisations



The tax bodies are recommended to sew by appealing to court the taxpayers avoiding the state registration of the rights for the objects of immovable property to make them pay the tax on the property of organisations and apply to them the measures of liability envisaged in the Tax Code.

If the object of capital construction where the initial cost is formed as of the date of transfer of the documents of state registration of the proprietary rights is handed over for operation using the act of acceptance, and the organisation actually carried out economic activities on the object, the given object of immovable property, according to the Ministry of Finance, possesses all features of fixed assets and is subject to the property tax from organisations. The issue of inclusion of such object in Account 01 “Fixed Assets” and in the objects of taxation for the property tax from organisations may not depend on the taxpayer will and is stipulated by the economic essence of the object.

Letter of the Federal Service of Labour and Employment No. 1551-6 of September 5, 2006



Explains individual issues pertaining to employee dismissal at own will.

Employee dismissal at own will is permitted also during the period of his leave and temporary disability. Thus, the date of dismissal may occur in the mentioned periods. The prohibition to dismiss an employee in the above periods pertains to only the dismissal at the initiative of the employer.

The Labour Code of the Russian Federation does not prevent from submission of the application for the dismissal at own will in any form, including the one sent by mail (for example, by registered mail).

The dismissal may occur upon expiry of the time limits specified in Part 1 of Article 80 of the Labour Code of the Russian Federation (two weeks) or within the time limits indicated in the employee application.

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