Our progress / Hot Topics

Taxation of financial transactions

Back to Media

Duma Passes in Second Reading Tax Arrears Write-off for Abandoned Companies

21.10.2014 17:07 / Interfax

On Tuesday, the State Duma passed in the second reading a draft tax administration reform law, allowing the taxman to write off abandoned companies’ tax arrears. The document is also geared to improve corporate property tax calculation for business centers and shopping malls, as well as boost electronic workflow.

According to the draft law, tax arrears or accrued fines as of 1 January 2015 are deemed irretrievable for companies that may be defined inactive as per Companies State Registration Act and are not undergoing bankruptcy procedures.

The decision to declare arrears irretrievable is passed by the company’s local tax authority. The necessary documents and procedure are approved by the Federal Tax Service.

The procedure will resolve the problem of building irretrievable arrears and clear de facto dead companies from the Company Registrar, says the draft bill memo.

The document also contains amendments that are designed to improve the effectiveness of electronic workflow between tax authorities and taxpayers. The Tax Code will be amended with a new concept of ‘taxpayer’s online customer account’. Documents transmitted through the online account and e-signed are deemed e-docs equally valid to paper documents personally signed by the taxpayer.

Also, the current rule in the Tax Code is mandatory signature for documents sent from the tax authority to the taxpayer. “The growing tendency to generate more e-documents puts more pressure on communication channels and hardware which in turn slows down document processing. At the same time, improving tax authorities’ IT resources means more expenses for the federal budget”, states the memo.

This calls for the introduction to the Tax Code of a unified e-signature for all e-docs sent by any officer of any tax authority.

Taxation of financial transactionsTaxation of financial transactions