The objections to the in-house tax audit report are accepted in full

The “Varshavskiy and Partners” law firm protected the taxpayer rights within the tax surveillance, and the judgement was rendered on refusal to bring to responsibility for committing a tax violation.

The case: The taxpaying organization has transferred from the general taxation system to the simplified taxation system. According to the tax inspection opinion, the VAT  was not restored by the taxpayer during the transfer to the simplified taxation system .

Case complexity: The in-house tax audit was conducted in respect of the taxpayer,  and the tax audit report was issued, according to which the non-payment of VAT to the tax authorities according to the requirements of the subclause 2 of clause 3 of article 170 of the Tax Code of the Russian Federation, was identified.  The explanations of the taxpayer under the in-house tax audit were not accepted.  Upon receipt of the report from the tax authority, the taxpayer made a decision on the appeal to the tax lawyers.

The work performed: The tax lawyers, in the first instance, assessed the legitimacy of the tax claim, and then analyzed the financial statements and tax returns submitted to the tax authority with the primary documents. On the basis of the study, the firm’s lawyers prepared the legal position and assessed the legal prospects of the dispute. On the basis of the analysis, the objections to the tax audit report were prepared. The firm’s lawyers took part in preparing a set of primary documents. The documents on the recommendation of our firm’s tax practitioners were attached as supporting documentation to the objections. On our part, the preparation of documents and their submission to the tax authority were held.

The result: According to the results of the work done, the decision was taken on the refusal to bring the taxpayer to tax responsibility under article 122 of the Tax Code of the Russian Federation for committing a tax violation, expressed in failure to restore VAT at the transfer to the simplified taxation system.

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