The Federal Tax Service Expands Its Authority: How Comprehensive Business Assessments Will Change the Rules of the Game

The Federal Tax Service (FTS) is preparing for a major expansion of its functions. A government-approved bill will grant the FTS the authority to conduct detailed analyses of companies’ financial conditions and issue official reliability assessments. These changes will come into force as early as May 2025 and will affect all areas of business—from government procurement to private investment.

How Will the New Assessment System Work?

The foundation of these changes lies in the pilot project, the “Legal Entity Assessment Service,” launched back in 2023. Over the past year and a half, more than 63,000 companies have used it, and now the government aims to make it a mandatory control tool.

The verification process consists of two stages:

• Basic check – confirmation that the company is operational and not a shell entity.
• In-depth analysis – evaluation of financial indicators: tax burden, profitability, liquidity, payroll fund, and other key metrics.

After the assessment, the FTS will issue an official statement that can be used in tenders, when concluding major contracts, or to confirm solvency to investors.

Pros and Cons for Businesses

What Benefits Will Companies Gain?

1. Official reliability confirmation – An FTS statement will become a strong argument when participating in government tenders and attracting financing.
2. 
   Reduced risks when working with counterparties – Businesses will be able to verify partners through a unified government service instead of commercial alternatives.
3. 
   Combating unscrupulous competitors – Shell companies and businesses with questionable reporting will be excluded from serious deals.

What Risks Arise?

1. Short appeal deadlines – If the FTS issues a negative assessment, companies will have only five business days to appeal.
   
   
2. Unclear evaluation criteria – The verification methodology has not yet been finalized, creating a risk of subjective decisions.
   
   
3. Restricted access to tenders – A low FTS rating could block a company’s path to government contracts.

Criticism from the Central Bank and Businesses

The Central Bank and experts have expressed serious concerns about the FTS’s expanded authority.

Key objections:

• Excessively broad powers – The law does not limit the scope of data the FTS can consider in its assessments.
• Risk of confidential data leaks – Clear rules for sharing reports with third parties have not been established.
• Pressure on businesses – If assessments become mandatory, companies may face additional bureaucratic burdens.

The Central Bank has proposed amendments to the bill, but so far, its concerns have not been addressed.

What Awaits the Market After the Law Takes Effect?

1. Tougher competition – Companies with transparent reporting will gain an advantage, while those using “gray” schemes will be pushed out of the market.
2. Increased demand for financial consulting – Businesses will actively optimize their reporting to secure high FTS ratings.
3. Growth of digital counterparty verification services – The government service may displace commercial alternatives, though it remains free for now.

Oversight or Additional Barriers?

The FTS’s new powers aim to increase business transparency, but their implementation must be carefully balanced. If the assessment system proves fair and transparent, it could help cleanse the market of unscrupulous players. However, excessive rigidity may create new barriers for entrepreneurs.

The final impact of the reform will become clear once the verification methodologies are approved—a process that will be crucial for the business community.