A Presidential Decree establishes temporary provisions for seizing property of taxpayers in order to satisfy tax debts, penalties, interest or social contributions. The present Civil Procedure Code only addresses the liability of 'state enterprises' and other pre-Civil Code entities and, by omission, does not provide for the exposure of a privately owned legal entity's assets in respect of debts (including tax debts) to be unlimited.
According to the temporary regulation, attached to the Decree, any asset that is the property of or under the operational management of a taxpayer can be seized to satisfy debts to the budget or non-budgetary funds after bank confirmation has been received that there are insufficient means in the taxpayer's bank account.
(Decree of the President of the Russian Federation of 14 February 1996, No. 199)
PROFITS TAX / CUSTOMS DUTIES / EXPORT OF TECHNICAL PRODUCTION
Export of locally produced technical equipment can be supported with short term loans from the budget at half of the Central Bank rate of interest, whilst profits from such export received in the fiscal year 1996 only have to be declared in the final declaration, thus not being subject to quarterly prepayments. Customs duties and tax exemption can be obtained if the equipment has been produced and exported within 'a reasonable time'. Regulations on implementation of the privileges will be issued by the Ministry of Finance, the State Customs Committee and other executive authorities.
(Regulation of the Government of the Russian Federation of 20 January 1996 No. 53)
VAT / REPRESENTATIVE OFFICES / EXEMPTION
Accredited representative offices of most foreign companies can claim exemption from VAT on the lease of office and living space. The tax authorities have now confirmed to us that lease payments for garage space and parking lots may also be included if the country in which the representative office is incorporated provides for a similar exemption. A copy of the applicable legislation has to be submitted to claim the exemption.
Legal developments are reported in Tax News Reporter on official publication. This may be long after the law is issued.
This publication is intended for public guidance only and should not form the basis for specific decisions.
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