Tax disputes: pre-trial defense

Tax claims against a client of the law firm for the amount exceeding 190 million rubles were withdrawn at the stage of examination of answers to the off-site tax audit report. When making an off-site tax audit the Tax Inspection denied granting the taxpayer (an owner/developer) a VAT refund requested by it upon transfer of the title to a complex of office buildings. The tax auditors’ claims were based on their conclusion about sham character of the transactions targeted at the financing of the office center construction and about the tax benefit being unjustified (financing was provided by means of bills of exchange). In course of submission of the answers and subsequent additional tax audit operations the true nature and economic substance of the transactions were proved, including through witness testimony. In consequence of the foregoing claims were withdrawn and the tax authority recognized that the taxpayer was entitled to the tax refund. The client was represented by Attorney-at-Law of the firm Valentin Moiseev.