Criminal cases are being initiated against companies despite their having received approved tax debt restructuring. The grant of instalment arrangements is governed by Article 64 of the Tax Code of the Russian Federation, which permits such arrangements for a period of up to three years upon approval of the relevant application by the tax authority. A mandatory condition for a positive determination is the provision of security in the form of a pledge of assets, a surety, or a bank guarantee.
Nikolai Roudomanov, advocate and partner at Nekrasov, Roudomanov & partners, explains that formally, a tax instalment arrangement should reduce the risk of criminal prosecution — a position confirmed by the October 2023 FTS letter. However, "a failure to comply with the agreed instalment payment schedule may constitute a ground for finding abuse; that said, all the circumstances of each case, which are of considerable importance, must be examined before any conclusions are drawn. As regards the freezing of accounts: this creates a situation in which the company is formally unable to discharge its tax obligations. In such circumstances, the business must engage proactively with the inspecting authority and, where possible, challenge the inspectorate’s actions through available legal remedies."
Read more: https://www.bfm.ru/news/582 321
Nikolai Roudomanov, advocate and partner at Nekrasov, Roudomanov & partners, explains that formally, a tax instalment arrangement should reduce the risk of criminal prosecution — a position confirmed by the October 2023 FTS letter. However, "a failure to comply with the agreed instalment payment schedule may constitute a ground for finding abuse; that said, all the circumstances of each case, which are of considerable importance, must be examined before any conclusions are drawn. As regards the freezing of accounts: this creates a situation in which the company is formally unable to discharge its tax obligations. In such circumstances, the business must engage proactively with the inspecting authority and, where possible, challenge the inspectorate’s actions through available legal remedies."
Read more: https://www.bfm.ru/news/582 321
