In most cases when the tax authority audits taxpayers it tends to “write off” those taxpayer’s expenses on marketing, informational, consultancies or other services and not to use them in an equation while calculating taxable income. Such services as it is deemed by tax officers are almost always fictitious, and even if they are not fictitious, they certainly have no relation to the commercial activity of the taxpayer or are incorrectly recorded and proved. Moreover, tax officers often say that their position on this matter is always upheld by courts. It is not so. (The research paper is available in Russian only)
B2B Services in tax records (2013)
In most cases when the tax authority audits taxpayers it tends to “write off” those taxpayer’s expenses on marketing, informational, consultancies or other services and not to use them in an equation while calculating taxable income. Such services as it is deemed by tax officers are almost always fictitious, and even if they are not fictitious, they certainly have no relation to the commercial activity of the taxpayer or are incorrectly recorded and proved. Moreover, tax officers often say that their position on this matter is always upheld by courts. It is not so. (The research paper is available in Russian only)
Practices: