Enterprises with tax arrears to the federal budget which arose before 1 January 1996 can settle their liabilities by issuing obligations secured on their assets and their receivables. The Ministry of Finance will then sell these obligations on a secondary market. There is a number of conditions, however, which restrict the use of this arrangement: for example all current payments to the federal budget and non-budgetary funds must be timely paid by the company in question and the Decree does not apply to companies that already enjoy the tax deferment regime under Presidential Decree No. 65 of 19 January 1996 (see Tax Alert 2/96). At the same time, enterprises with arrears to the federal budget and to state non-budgetary funds that exceed 1 billion roubles will only be eligible for the restructuring of their liabilities if a special commission confirms that the enterprise is potentially able to meet its liabilities. If a long-term deferment is being applied for, a bankruptcy case must be commenced before the arbitration court.
Presidential Decrees No. 1203 and No. 1207 of 18 August 1996
EXCISE DUTIES / NEW INSTRUCTION
A new Instruction on the order of calculation and payment of excise duties has been issued, replacing Instruction No. 36 of the State Tax Service, following recent amendments to the law on Excise duties (see our Tax Alert 3/96).
Instruction No. 43 of the State Tax Service and the Ministry of Finance of 22 July 1996
RECTIFICATION / CHARTER CAPITAL / VAT AND CUSTOMS DUTIES EXEMPTION
In our Tax News Reporter of 7 August 1996, we mentioned that Government Regulation No. 883 of 23 July 1996 puts into place restrictions for VAT and customs duties exemptions for goods imported as a contribution to the charter capital of joint stock companies. Please note that the new restrictions also apply to in-kind contributions by a foreign partner to the capital of a full partnership.
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