taxnews.ey.comPrint

19 February 2020

Russia's Finance Ministry issues guidance regarding Article 54.1 of the Tax Code

The Finance Ministry has issued the first official guidance on whether Article 54.1 of the Tax Code provides for the calculation of a taxpayer's actual tax obligations. According to the legal position expressed in the Ministry's Letter No. 01-03-11/97904 of 13 December 2019, the provisions of Article 54.1 of the Tax Code do not provide for:

  • tax obligations to be determined by computation where taxpayers abuse their rights
  • the deduction of a taxpayer's expenses in determining its tax obligations if its abusive actions fall within the scope of Article 54.1 of the Tax Code.

The Finance Ministry's letter and the legal position expressed in it regarding the interpretation of Article 54.1 of the Tax Code have negative implications for taxpayers and may adversely affect the small body of case law that has developed in recent times in the area of tax reconstruction.

A Global Tax Alert, attached below, provides additional details.

———————————————
ATTACHMENT

Full text of this Tax Alert

Document ID: 2020-0405

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2025, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement