As of 1 January 1997, individual entrepreneurs, including foreign citizens, must pay pension fund contributions at a rate of 28% (previously this was 5%) of their "income" (net amount received minus related costs), whilst the obligation for enterprises to pay Pension Fund contributions on amounts paid to contracted individuals now applies to all civil law contracts providing for the "performance of works and services". Previously, Pension Fund contributions needed to be paid only if enterprises were employing individuals under certain specific types of civil law agreements. The new law also states that citizens using services of individuals under civil law agreements must pay 28% Pension Fund contributions on the gross salary paid, although the mechanism for paying such contributions is not yet in place and this provision will need additional clarification in order to be implemented.
Federal Law of 5 February 1997 No. 25-FZ
The Constitutional Court has ruled that the tax police are authorised to collect tax arrears and late payment penalties from taxpayer's bank accounts after the completion of an audit but, contrary to current practice, are not authorised to seize concealment and late filing penalties without a court decision.
Regulation of the Constitutional Court of 17 December 1996 No. 20-P
CENTRAL BANK REFINANCING RATE
It has been announced that effective 10 February 1997, the Central Bank refinancing rate has been lowered from 48% to 42% per annum. The Central Bank refinancing rate is used to calculate interest on understated profits tax prepayments or late payment interest for Pension Fund contributions.
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For further information contact Alla Shaulina on tel: +7 503 232 5511 fax: +7 503 232 5522 or e-mail directly: Alla_Shaulina@ru.coopers.com or enter a text search 'Coopers & Lybrand' and 'Business Monitor'.
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Illustrative corporate consolidated financial statements 2012 provides a realistic set of financial statements for a corporate entity, based on the requirements of IFRS standards and interpretations for financial years beginning on or after 1 January 2012.
A recent case has considered the standard of care owed by auditors.
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