According to the State Duma, the priority order for bank transfers in case of insufficient funds on a particular account set out in art. 855 of the Civil Code overrules tax and financial legislation and is therefore also applicable to tax or other payments due to the budget. A letter of 22 August 1996 of the State Tax Service, the Ministry of Finance and the Central Bank stated the contrary position, that tax payments have priority over all other payments. This is considered by the Duma as a "gross violation of the Civil Code" by these authorities.
Regulation of the State Duma of 11 October 1996 No. 682-II GD
PENSION FUND / CONCEALMENT PENALTIES
In assessing concealment penalties for the pension fund, only concealed salary is taken into account, not non-salary payments such as non-repayable loans, amounts given to employees to remit repayable loans, payments for food and travel, compensation for kindergarden expenses, business trip compensation in excess of norms etc. . Salary here means remuneration as defined in Instruction 89 of Goskomstat. Such additional payments which are not covered by Instruction 89 may be subject to Pension Fund contributions, but in case these are not paid and disclosed later, no concealment penalties may be levied in respect of these amounts.
Letter of the Pension Fund of 4 September 1996 No. EV-16-11/6316-IN
DRAFT TREATIES ON CO-OPERATION IN ENFORCEMENT / MOLDOVA / YUGOSLAVIA
Russia and Moldova are considering concluding a treaty to facilitate the exchange of information and co-operation in tax enforcement matters between the Russian tax police and the Moldovan Ministry of Finance. A treaty about co-operation in customs matters between Russia and Yugoslavia is in preparation.
RECTIFICATION / CHARTER CAPITAL OF BANKS WITH FOREIGN PARTICIPATION
Our Tax News Reporter of 24 October 1996 should have stated that if the foreign participation in a Russian bank exceeds 50%, at least one shareholder should be involved to the extent of at least 10 billion roubles.
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