Penalties for violating the order of registration with tax bodies
Exceeding the 10 days term set for filing the application for registration: for up to 90 days 5,000 Rb of penalty
Over 90 days 10,000 Rb of penalty
Carrying on activities by an organisation or an individual entrepreneur without registration with the tax bodies: for up to 3 months 10% of income derived from such activity during the said period but not less than 20,000 Rb for more than 3 months 20% of the income derived during the period exceeding 90 days from activity carried on during the said period without registration with the tax bodies
3) Tax authorities
Rights of tax authorities:
To demand from taxpayers and other obligated persons presentation of documents that can be used as a reference for the computation and payment of taxes
Suspend operations with taxpayers' bank accounts and seize their property
To conduct an examination (inspection) of any premises and grounds used by the taxpayer for generating taxable income or for keeping objects of taxation, regardless of their location; to conduct inventory of the taxpayers property
To determine amounts of taxes owed by taxpayers, on the basis of available information on the taxpayer or by analogy with other similar taxpayers, in case the taxpayer denies tax body officials admittance to his/her premises and areas for examination (inspection), or fails to present the documents needed for computation of the taxes due for over two months
To conduct an audit of taxpayers and seize the documents confirming the fact of tax offences, providing there are sufficient reasons to believe that the documents will be destroyed, concealed or falsified
To collect taxes in arrears and penalizing interest accrued
Obligations of tax authorities:
To register taxpayers and keep all related data
To inform taxpayers of the effective taxes, provide them with established accounting forms and explain the procedure of their processing, as well as the procedure of tax calculation and payment
To refund or offset excessively paid taxes and penalties according to the procedure set by the Tax Code.
Tax authorities and their officials bear responsibility for:
damage inflicted on the taxpayer in the course of unlawful actions (decisions) or inactions
non-fulfillment or improper fulfillment of their duties on securing taxpayer's rights
4) Tax offences
Responsibility for tax offences
Each taxpayer is presumed innocent of committing a tax offence until his guilt is proven in accordance with the procedure provided for by the federal law and established by a legally effective court ruling.
A taxpayer is not required to prove his innocence. The burden of presenting evidence of the tax offence and proving taxpayers guilt in committing it is born by the tax authorities. Ineradicable doubts as to the guilt of the taxpayer in committing a tax offence are interpreted in favour of the taxpayer.
Taking liable for commitment of a tax offence:
of an organisation ≈ does not release its officials from administrative, criminal or other responsibility if sufficient grounds are present
of a taxpayer ≈ does not release him from the obligation to pay taxes and penalising interest
Administrative liability in the field of taxes and charges may be imposed on the following persons:
natural persons - taxpayers if the exposed action is not qualified as a tax offence
Administrative penalties for administrative offences in the field of taxation are levied on the basis of a court ruling. Court proceedings are initiated in accordance with a protocol on an administrative offence drawn up by the tax body
Tax audits may cover no more than 3 calendar years of taxpayers operation preceding the year of the audit. Tax authorities may undertake separate audits of an organisation's branches and representations, irrespective of any audit that may have previously been undertaken of the organisation itself.
4.1) Court Proceeding in a tax offence case
If upon a tax audit the tax body took a decision on holding the taxpayer liable for committing the tax offence (in the form of a ruling to hold the taxpayer liable), then:
Before filing a claim to the court the tax body must offer the taxpayer to pay the amount of tax due and sanctions on a voluntary basis
In case the taxpayer refuses to pay the tax due and sanctions on a voluntary basis, the tax body files a claim to the court on collecting them
A claim on collecting the tax due and sanctions from an organisation or an individual entrepreneur is filed to the arbitration court, or to the court of general jurisdiction if such are to be collected from a natural person.
A claim may be filed within the term of six moths starting from the date when the tax offence was discovered and the act of tax audit was drawn up
Interpretation of unremovable doubts
In accordance with Article 3 of the Tax Code, all unremovable doubts, contradictions and ambiguities of legislative acts relevant to taxes and/or charges shall be interpreted in favour of taxpayers.
In the tax system, proceeding from the Federal device of Russia, the rights and the responsibilities of corresponding levels of management (Federal and territorial) in the tax law are differentiated. Introduction of local taxes and tax collections as an addition to the list of the operating Federal taxes, stipulated by the legislation, has allowed to take into consideration various local needs and kinds of incomes for local budgets. Nevertheless the Tax Law has quite a lot of disadvantages, such as complexity, a plenty of various privileges etc., which do not stimulate economic growth.
Tax Code of the Russian Federation http://www.garweb.ru/project/mns/en/law/garweb_law/10800200/10800200-001.htm
Russia Tax Overview http://www.kpmg.ru/russian/supl/library/taxlegal/Tax%20Overview.pdf
Conesco Press. Russian Taxation http://www.conseco.ru/eng/
Budgetary system of the Russian Federation http://budgetrf.nsu.ru/budget/Publications/2002/Adoption/Federal/Npd/Budgetlaws/Budget/194fz30122001/194fz30122001_short.htm
Wikipedia. The free encyclopedia. http://en.wikipedia.org
Финансовое право. Учебник для вузов. Л.Г. Вострикова. М. Изд. "Юстицинформ" 2005г.
1Wikipedia. The free encyclopedia. http://en.wikipedia.org/wiki/Tax
2Tax Code of the Russian Federation Article 8 http://www.garweb.ru/project/mns/en/law/garweb_law/10800200/10800200-001.htm
3Budgetary system of the Russian Federation http://budgetrf.nsu.ru/budget/Publications/2002/Adoption/Federal/Npd/Budgetlaws/Budget/194fz30122001/194fz30122001_short.htm
4 Conesco Press. Russian Taxation http://www.conseco.ru/eng/
5 Conesco Press. Russian Taxation http://www.conseco.ru/eng/
6 Russia Tax Overview http://www.kpmg.ru/russian/supl/library/taxlegal/Tax%20Overview.pdf
7Tax Code of the Russian Federation http://www.garweb.ru/project/mns/en/law/garweb_law/10800200/10800200-001.htm
8 Conesco Press. Russian Taxation http://www.conseco.ru/eng/