On August 19, 2020, a new article of the Tax Code - 54.1, came into force, regulating the limits of the exercise of rights to calculate the tax base and the amounts of taxes and contributions. It was put into effect by Federal Law No. 163-FZ of July 18, 2017.
How should tax authorities apply the provisions of this article in practice? The Federal Tax Service recently issued recommendations on this matter.
The letter of the Federal Tax Service dated October 31, 2020 N ED-4-9/ [email protected] states that Article 54.1 of the Tax Code is aimed at preventing the use of “aggressive” tax optimization mechanisms.
From 53 to 54.1
Previously, when conducting audits, tax authorities were guided by Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated October 12, 2006 N 53 “On the assessment by arbitration courts of the validity of the taxpayer receiving a tax benefit.”
Article 54.1 of the Tax Code is a new approach to the problem of taxpayers’ abuse of their rights, taking into account the main aspects of established judicial practice.
