Cases

The Russian branch of the American industrial Corporation has entered several intra-group transactions with other divisions of the international holding. As a result, the client faced the issue of taxation of such transactions and possible optimization of the tax burden.

The accountants and lawyers conducted a detailed analysis of Russian and international tax legislation and prepared a legal opinion on the taxation of specific transactions conducted by the client;

In addition, the accountants and lawyers developed a strategy to reduce tax risks and suggested ways to successfully optimize the tax base.

An on-site tax audit was conducted against a major international food producer. Increased attention of the tax authority was drawn to the issue of the legality of accrual and proper payment of income tax and corporate property tax. The company requested legal assistance.

The accountants and lawyers reviewed the client’s tax reports and prepared the necessary explanations for the tax authority. In addition, our specialists successfully represented and defended the interests of the client during the events of the tax control.

A foreign IT company that provides its services on the territory of the Russian Federation via the Internet faced the issue of proper calculating and paying VAT when providing e-services.

In response to the client’s questions, the accountants and lawyers:

Carried out a detailed analysis of the Russian tax legislation regarding the need to pay VAT considering aspects of company’s operation.

Calculated VAT and specified the procedure for its payment.

Proposed several options for reducing the amount of VAT paid to the Russian budget.

An American IT company employed a foreign citizen with permanent residence permit in the Russian Federation for the purpose of rendering paid services. As a result, the client faced a question of tax residency peculiarities and the taxation procedure of a foreign citizen.

The accountants and lawyers have carried out an analysis of tax legislation of the Russian Federation and the relevant international agreement on double taxation avoidance.

As a result, a legal opinion was prepared considering the peculiarities of tax residence and income taxation of a foreign citizen. The client was provided with comprehensive answers to the raised questions.

The management of a large international company in the wind farm installation field turned to our specialists for an internal audit for the last 3 years. The company has more than 200 employees and annual turnover of more than 1 billion rubles. The audit purpose was to assess the business and tax accounting state, identify the existence of distortions (including essential ones) and possible risks to make the necessary amendments.

• During the audit of the accounting and tax registers, as well as the company’s financial statements, specialists prevented penalties from the tax inspection by identifying errors made by a full-time accountant.
• Made amendments to the company’s accounting records and tax returns submitted, that enabled to avoid a tax audit.
• Found and eliminated some errors in the methodology for calculating and paying VAT and an income tax, that enabled to reduce tax burden and optimize the company’s financial flows.

VALEN Group accountants and lawyers successfully conducted tax due diligence of a foreign company incorporated in the UK, which allowed the client company to achieve all its intended objectives.

The actual location of the client company abroad was the main project complexity. However, highly qualified VALEN accountants and lawyers professionally implemented all the objectives set, given the requirements of the client.

Within this project framework, VALEN Group team has successfully implemented a full range of tax due diligence-related services, namely:

• provided advice on all matters related to the Due Diligence conducting;
• carried out direct Due Diligence;
• prepared a conclusion based on the data obtained.