Windfall tax for major companies to be introduced in Russia

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Monitoring of the Federal Legislation dated 22.12.2006

Decision of the Constitutional Court of the Russian Federation No. 10-P of December 15, 2006 on the Case of Constitutionality of Provisions of Parts 4, 5 and 6 of Article 215.1 of the Budget Code of the Russian Federation

The Constitutional Court of the Russian Federation recognised that individual provisions of Article 215.1 of the Budget Code of the Russian Federation specifying that cash servicing of execution of the budgets of the subjects of the Russian Federation is vested in the Federal Treasury comply with the Constitution of the Russian Federation. The Decision was stipulated by the request of the Government of Moscow stating that the challenged norms restrict the right of the subject of the Russian Federation to execute independently its budget, since an integral part of the budget authority of the subjects of the Russian Federation, namely, independent cash servicing of execution of their budgets is handed over to the federal body of executive power.

The court explained that with the presence of the federal state where the budgets of appropriate levels, while being independent, form a single budget system, special significance is attached to issues of coordination of activities of the bodies of public power involved in the budget process and interaction between them. The uniform financial, credit and monetary policy carried out in the Russian Federation on the basis of uniform federal standards of financial activities introduced by the federal bodies of executive power does not exclude a joint participation of the federal bodies of executive power and the bodies of executive power of the subjects of the Russian Federation in individual procedures of the budget process, including the stage of execution of the budget of the subject of the Russian Federation. The federal legislator having granted to the Federal Treasury the authority of cash services for the execution of the budgets of all levels of the budget system of the Russian Federation took account of the need to enhance the reliability of management of public finances and transparency of the budget process. Such variant of legal regulation permits to ensure comparability of the figures of execution of the budgets of all levels of the budget system of the Russian Federation, have operative information of the condition of public finances for the whole of the country in any moment of time, which is necessary for the macroeconomic forecasts and decision taking to render financial aid in necessary cases to the regional budgets, and does not imply that the Federal Treasury may abuse the authority assigned to the bodies of executive power of the subjects of the Russian Federation in compliance with the Constitution of the Russian Federation, namely, to dispose of the resources of the budget of the subject of the Russian Federation, determine directions of their use and authorising the payments from the single budget account.

Federal Law No. 238-FZ of December 19, 2006 on the Federal Budget for the Year 2007

The Federal Law is adopted to generate and spend the fund of monetary resources intended for the financial support of the tasks and functions of the state in 2007.

The federal budget for the year 2007 is endorsed with expenses in the amount of Rbl 5,463,479,900.0 thousand and incomes amounting to Rbl 6,965,317,200.0 thousand proceeding from the forecasted volume of the gross domestic product in the amount of Rbl 31,220 billion and the level of inflation (consumer prices) of 6.5%-8.0%. Both expenses and incomes of the federal budget for the year 2007 are envisaged in the amount exceeding appropriate figures of the federal budget of 2006, with the planned level of inflation being lower. It is envisaged to create in 2007 a Compensation Fund in the amount of Rbl 153,130,234.1 thousand, Federal Fund of Support of the Subjects of the Russian Federation in the amount of Rbl 260,418,336.2 thousand.

The federal budget of 2007 preserves the trends of the budget policy of the recent years and continuity as compared to the budget of the current year. The draft budget bears many new provisions and implies GDP growth of 7% on the whole.

The budget envisages an increased financing in section "National Economy". In 2007, the new federal targeted program will be financed - "Development of the Nuclear Power Supply Complex of Russia for the Years 2007-2010 and Until 2015" in the amount of Rbl 18 billion. It is envisaged to finance the state program "Creation in the Russian Federation of Techno Parks in the Hi-Tech Sphere" providing for an accelerated development of hi-tech sectors of economy and turning them into one of the main motive forces of the economic growth of the country.

Budget projects of 2007 are aimed at the implementation of strategic goals and priorities of the socio-economic development of Russia defined in the Message of the President of the Russian Federation to the Federal Assembly of the Russian Federation and in the Budget Message of the President of the Russian Federation on the budget policy in 2007. The Federal Law, in particular, envisages increased expenses for the implementation of national projects, improvement of the democratic situation in the Russian Federation and other measures of socio-economic nature.

The Federal Law is entered into force from January 1, 2007.

Decision of the Government of the Russian Federation No. 779 of December 20, 2006 on the Amendments to the Decision of the Government of the Russian Federation No. 828 of July 8, 1997

The introduced amendments pertain, first and foremost, to the transfer of authority to issue and replace the passports of the Russian Federation, as well control over observation of the Regulation on the passport of the citizen of the Russian Federation, to the territorial bodies of the Federal Migration Service. Earlier, the mentioned functions were vested in the bodies of internal affairs. The entry of information and notes in the passport of the citizen of the Russian Federation is also vested in the territorial bodies of the Federal Migration Service.

The issue and replacement of passports will be arranged not only at the place of residence of the citizen, but also at the place of stay or the place where the citizen applies according to the procedure specified by the Ministry of Internal Affairs of the Russian Federation.

The amendments also pertain to the design of the blank passports to introduce additional security measures. The blank passport will be stitched along the whole length with a dual-colour thread glowing in ultraviolet light. Internal pages of the blank passport will contain watermarks depicting letters RF. Some pages will contain protective metallic thread changing the colour depending on the viewing angle. Location on the page and the method of printing of page numbers will also change - they will be entered by laser perforation. The third page intended for entry of personal information of the citizen of the Russian Federation will be laminated with a film containing a holographic image to protect personal information.

The sixteenth and seventeenth pages of the blank passport indented for information on children of the passport holder must contain the signature of the official having issued the passport and the seal of the territorial body of the Federal Migration Service.

The new passports of the citizen of the Russian Federation will be issued from March 1, 2007. The old passports are valid until the age when the passports must be replaced: 20 and 45 years.

Blank passports made before the entry into force of the given Decision will be used to draw up the passports together with the new ones before they are used up, however, no later than January 1, 2008.

Decision of the Government of the Russian Federation No. 776 of December 20, 2006 on the Amendments to Item 4 of the Decision of the Government of the Russian Federation No. 732 of December 5, 2005

Decision of the Government of the Russian Federation No. 732 of December 5, 2005 specified the volumes of import to the Russian Federation of poultry meat in 2006-2009. The specified volumes are used to issue licenses for the import of poultry to participants of foreign trade activities in the particular year.

In the beginning of 2006, because of the danger of epidemics of bird flue and the drop of demand for the poultry products, the Ministry of Agriculture of the Russian Federation pleaded organisations importing poultry meat to reduce the volume of imported products by one third to avoid overfilling of the Russian market with dumping products and protect the Russian poultry producers. However, importer having volunteered to reduce the import of poultry meat appeared to be in an unfavourable position as compared to other importers of the mentioned products, since the quota in the new year is proportional to the volume of poultry meat imported by the importer organisation in the expired year.

The Decision is taken to calculate the quotas for the import in 2007 to the Russian Federation proceeding from the volumes in 2005 rather than 2006. Participants of foreign trade activities that did not import poultry meat in 2005 have the quotas calculated proceeding from the volumes imported by them in 2006.

The Decision is entered into force from the day of its official publication.

Decision of the Government of the Russian Federation No. 774 of December 18, 2006 on the Amendments to the Decisions of the Government of the Russian Federation No. 873 of December 31, 2005 and No. 253 of April 28, 2006

From July 1, 2006, the main technological equipment for production of ethyl alcohol, alcoholic and alcohol-containing products must be outfitted with technical means of registration and transfer of information on the volume of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products to the Joint State Automatic Information System.

The given technical means will have installed the software of the Joint State Automatic Information System of registration of the volume of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products which form its integral element and include the means of protection of information preventing its incorrect reading and faking.

The amendments specify that for organisations importing ethyl alcohol and alcohol-containing products, as well as organisations importing alcoholic products, the procedure of providing the software and its installation in the technical means is endorsed by the Federal Customs Service of Russia in coordination with the Federal Security Service of Russia, Ministry of Agriculture of Russia and the Federal Tax Service of Russia. Earlier, the mentioned authority was vested in the Ministry of Economic Development of Russia, and participation of the Federal Tax Service of Russia in coordination of the procedure was not envisaged.

Decision of the Government of the Russian Federation No. 767 of December 14, 2006 on the Amendments to and Invalidation of Some of the Acts of the Government of the Russian Federation on the Issues of Licensing of Individual Types of Activities

The amendments introduced in the decisions of the Government of the Russian Federation on the issues of licensing of individual types of activities are stipulated by the significant reduction of the licensed types of activities and the changing of the procedure of obtaining and revocation of licenses.

In particular, the licensing is stopped for the public demonstration of audio and video pieces in cinema halls, labelling of products with the sign of compliance with the state standards, activities of making, use, storage and destruction of seals and letterheads depicting the state emblem of the Russian Federation, servicing of air traffic in civil aviation, production of elite seeds, assessment activities, production of tobacco items, industrial fishing, activities of certification centres of the electronic digital signature, activities of purchase, supplies, processing, storage and sale of agricultural products, raw materials and foodstuffs for the state needs, veterinary activities, activities of pawnshops, pedigree animal breeding and some other types of activities.

Suspension of the license is vested in the licensing body if the license holder is called to account for administrative violations in the form of suspension of activities. The license is revoked by the court if the license holder fails to eliminate the violation of the license requirements and terms having caused the administrative suspension of activities.

Direction of the Central Bank of Russia No. 1757-U of December 11, 2006 on the Amendments to the Regulation of the Bank of Russia No. 205-P of December 5, 2002 on the Rules of Accounting Work in Credit Organisations Located on the Territory of the Russian Federation

Decision of the Board of Directors of the Bank of Russia amended the appendix to the Regulation of the Bank of Russia No. 205-P of December 5, 2002 on the rules of accounting work in credit organisations located on the territory of the Russian Federation.

The changes occurred in the structure of the Chart of Accounts, characteristics of some accounts, as well as the procedure of registration of fixed assets, non-material assets, material reserves.

As a result of introduced amendments, some accounts are excluded. Thus, several balance accounts are excluded from section "Capital and Funds": 103 "Registered Capital of Credit Organisations Created in the Form of a Joint-Stock Company Generated at the Expense of Preference Stocks", 104 "Registered Capital of Credit Organisations Created in the Form of a Limited- (Additional) Liability Company"; in section "Operations with Clients" the following are excluded: 40113 "Resources of the Federal Budget of the Previous Year Allocated to State Organisations", 40114 "Resources of the Federal Budget of the Previous Year Allocated to Non-State Organisations", 40309 "Resources of the Russian Federal Property Fund".

Meanwhile, the Chart of Accounts is extended to include new types of accounts, for example, section "Capital and Funds" includes accounts 10207 "Registered Capital of Credit Organisations Created in the Form of a Joint-Stock Company", 10208 "Registered Capital of Credit Organisations Created in the Form of a Limited- (Additional) Liability Company".

A new wording is provided to Appendix 10 "Procedure of Recording of Fixed Assets, Non-Material Assets, Material Reserves".

The Direction specifies that the balance report as of July 1, 2007 must not have residues on accounts excluded from the Chart of Accounts.

The Direction is entered into force from January 1, 2007.

Registered in the Ministry of Justice of the Russian Federation on December 19, 2006. Reg. No. 8637.

Order of the Federal Tax Service No. SAE-3-19/825@ of December 1, 2006 on the Endorsement of the Form of the Demand to Pay the Tax, Fee, Penalty, Fine, Document of Revealed Arrears with the Taxpayer (Payer of Fees) or Tax Agent, As Well As the Documents Used by the Tax Bodies When Applying Provisional Measures and the Measures of Enforced Collection of Debts in Obligatory Payments to the Budget System of the Russian Federation

The present document is adopted in pursuance of the Tax Code of the Russian Federation. Thus, the Order endorses the following forms of documents: demand to pay the tax, fee, penalty, fine; document of revealed arrears with the taxpayer (payer of fees) or tax agent; decision to suspend operations on the accounts of the taxpayer (payer of fees) or tax agent in the bank, as well as to revoke the suspension of operations on the accounts of the taxpayer (payer of fees) or tax agent in the bank.

The endorsement of the new forms of documents invalidates the Order of the Ministry of Taxation of the Russian Federation No. BG-3-29/465 of August 29, 2002 adopted to improve the work of the tax bodies pertaining to application of enforced collection of the tax debts.

The Order is entered into force from January 1, 2007.

Registered in the Ministry of Justice of the Russian Federation on December 19, 2006. Reg. No. 8633.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 798 of November 24, 2006 on the Endorsement of the Qualification Requirements to Professional Knowledge and Skills Necessary for Execution of Official Duties in Positions of the Federal State Civil Service in the Ministry of Public Health and Social Development of the Russian Federation

The document is intended to provide for the necessary professional level of federal state civil servants, uniform qualification requirements for the positions of the federal state civil service.

Thus, the Order endorses qualification requirements to the professional knowledge and skills necessary for execution of official duties in positions of the federal state civil service in the Ministry of Public Health and Social Development of Russia. The following categories are defined: "heads" of the higher and main group of positions; "assistants (advisors)" of the higher group of positions; "specialists" of the main, leading and senior group of positions; "supporting specialists" of the leading, senior and junior groups of positions. The mentioned category of civil servants must have knowledge of the Constitution of the Russian Federation, federal laws, other normative legal acts in the sphere of reference of the Ministry of Public Health and Social Development of Russia.

Registered in the Ministry of Justice of the Russian Federation on December 18, 2006. Reg. No. 8617.

Order of the Federal Customs Service No. 1195 of November 21, 2006 on the Amendments to the Order of the Federal Customs Service of Russia No. 7 of January 12, 2005

Pursuant to the Decree of the President of the Russian Federation No. 473 of May 11, 2006, the Federal Customs Service of Russia is handed over from the Ministry of Economic Development directly to the Government of the Russian Federation. Besides, the Federal Customs Service of Russia is empowered with authority of working out of the state policy and normative and legal regulation in the customs sphere.

Appropriate amendments are introduced in the General Regulation on the regional customs department and the General Regulation on the customs station endorsed by the Order of the Federal Customs Service of Russia No. 7 of January 12, 2005.

Thus, the regions covered by the regional customs departments and customs stations are defined by the Federal Customs Service of Russia independently rather than in coordination with the Ministry of Economic Development of Russia as was envisaged before.

The Order specifies in detail the authority of the regional customs departments and customs stations pertaining to protection of information comprising the state secret. The following are included: providing for protection of information comprising the state secret, creation of conditions providing for protection of the mentioned information, control of efficiency of protection of information comprising the state secrete (in the regional customs departments and subordinate customs bodies or customs posts respectively); implementation of measures of restriction of rights of citizens and providing social guarantees to persons who have or had access to information comprising the state secret, taking measures to provide for protection of information comprising the state secret and their media in cases of change of authority, liquidation (of regional customs departments or customs stations respectively) or termination of work with the mentioned information.

The Order changes the procedure of assigning of the chief of the regional customs department and the chief of the customs office. Assigning to (dismissal from) the position is vested directly in the head of the Federal Customs Service of Russia (earlier, the Minister of Economic Development and Trade of the Russian Federation at his presentation).

The chief of the regional customs department and the chief of the customs station bears additional responsibility for organisation of protection of information comprising the state secret and for the failure to observe the introduced restrictions on disclosing of the given information.

Registered in the Ministry of Justice of the Russian Federation on December 18, 2006. Reg. No. 8616.

Order of the Ministry of Justice of the Russian Federation No. 352 of December 6, 2006 on the Amendments to the Order of the Ministry of Justice of the Russian Federation No. 226 of September 18, 2003

An excerpt from the Joint State Register of Rights for Immovable Property and Transactions with It must contain the description of the object of immovable property, registered rights for it, as well as restrictions (encumbrances) of rights, information on the claims and claims rights declared in court for the given object of immovable property as of the moment of issue of the excerpt.

In the presence of the registered lease contracts for the object of immovable property in the Register and the mortgage for the lessee rights under such contract, information of it is reflected additionally in column "Restrictions (Encumbrances) of Rights" of the excerpt of the registered rights for the given object of immovable property. The words "Mortgage of the Lease Right" are included in particular, the date and number of the state registration, the period for which it is specified, information on the person enjoying this right.

Registered in the Ministry of Justice of the Russian Federation on December 18, 2006. Reg. No. 8605.

Regulation of the Ministry of Finance of the Russian Federation and the Central Bank of Russia Nos. 149n, 296-P of November 24, 2006 on the Procedure for Closing Operations on the Accounts of the Federal Budget of 2006 Opened in the Divisions of the Payment Network of the Bank of Russia and Credit Organisations (Branches)

In view of the end of the fiscal year, accounts used for the execution of the federal budget of 2006 must be closed at 24 hours on December 31.

The Federal Law on the federal budget for the year 2006 specifies that the first five working days of 2007 are an additional period of termination of operations of distribution among the territorial bodies of the Federal Treasury of receipts of 2006 among the levels of the budget system of the Russian Federation and their transfer to the budgets while recording the mentioned operations in the reports of execution of the budgets for the year 2006.

The Regulation includes the procedure of termination of operations on the accounts of the federal budget of 2006 opened in the divisions of the payment network of the Bank of Russia and credit organisations (branches) covering the period from December 28, 2006 to the sixth working day of 2007.

The Regulation defines the sequence of termination of operations on the balance accounts of incomes distributed by the bodies of the Federal Treasury among the levels of the budget system of the Russian Federation, accounts of resources of the federal budget in the currency of the Russian Federation and accounts of resources of the federal budget in foreign currencies.

The accounts must be closed no later than the sixth working day of 2007.

The Regulation also closes operations on the accounts of the federal budget of 2006 opened in the field institutions of the Bank of Russia.

Registered in the Ministry of Justice of the Russian Federation on December 15, 2006. Reg. No. 8595.

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