22 November 2016 Russian Tax Authorities examine actual recipient status in relation to royalties Russia has recently experienced a steady development in the case law relating to the application of the "beneficial ownership" concept by tax authorities with respect to payments of passive income to foreign shareholders. A review of recent developments reflects that both tax authorities and taxpayers have been demonstrating a more comprehensive and systematic approach to the process of examining information and building a body of evidence on this issue. An example of this is a recent decision published on the Federal Tax Service's website that was issued in response to an appeal filed by a taxpayer (the Company) against a tax audit decision. In the respective case, the tax authorities attempted to challenge the application of a withholding tax exemption by a Swiss company which received royalties from a source in Russia. Document ID: 2016-1995 |
