VimpelCom Defeats Federal Tax Service
Posted: Tue Jan 21, 2025 3:21 am
On May 27, 2024, the Ninth Arbitration Court of Appeal of Moscow published the reasoning for the decision of the court hearing that took place on April 23, 2024. At that time, the court granted the petition of PJSC VimpelCom and overturned the decision of the Moscow Arbitration Court of February 7, 2024 in the case on the appointment of an audit by the Federal Tax Service (FTS) of Russia against the communications operator, recognizing it as illegal.
The Federal Tax Service azerbaijan whatsapp number database of Russia scheduled an audit on December 29, 2020. Based on its results, it assessed additional RUB 179 million in income tax on the transaction between PJSC VimpelCom and Veon Wholesale Services BV (VWS), recording a deviation in prices from market prices. This became the reason for the legal proceedings.
For three years, each court instance sided with the Federal Tax Service of Russia. However, the Ninth Arbitration Court of Moscow sided with PJSC VimpelCom. Earlier, in November 2023, the Federal Tax Service stated in court that it had discovered another transaction with Veon, which, in terms of the scope of services, overlaps with the transaction with VWS under review. Therefore, on February 7, 2024, the court left the ruling of the previous instance unchanged. However, on April 23, the Ninth Arbitration Court of Appeal noted that the Federal Tax Service did not substantiate the fact that the subjects of the transactions overlap, although the inspections conducted show the opposite. The judge also added that the appointment of an inspection violates the rights of the company, even if the inspection has already been conducted.
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The Ninth Arbitration Court of Appeal of the City of Moscow, after PJSC VimpelCom appealed the first instance decision in favor of the Federal Tax Service, sided with the operator. The issue of cassation remains open.
Now the Federal Tax Service of Russia has two months from the date of publication of the reasoning part of the court decision (i.e. until July 27, 2024) to file a cassation appeal to the Arbitration Court of the Moscow District. This is the last opportunity for the Federal Tax Service to appeal the ruling and win the case.
Leading lawyer in the dispute resolution practice of the EBR law firm Albina Galimova said that, according to statistics, the court rarely changes its decision after several appeals: "The Constitutional Court of the
The Federal Tax Service azerbaijan whatsapp number database of Russia scheduled an audit on December 29, 2020. Based on its results, it assessed additional RUB 179 million in income tax on the transaction between PJSC VimpelCom and Veon Wholesale Services BV (VWS), recording a deviation in prices from market prices. This became the reason for the legal proceedings.
For three years, each court instance sided with the Federal Tax Service of Russia. However, the Ninth Arbitration Court of Moscow sided with PJSC VimpelCom. Earlier, in November 2023, the Federal Tax Service stated in court that it had discovered another transaction with Veon, which, in terms of the scope of services, overlaps with the transaction with VWS under review. Therefore, on February 7, 2024, the court left the ruling of the previous instance unchanged. However, on April 23, the Ninth Arbitration Court of Appeal noted that the Federal Tax Service did not substantiate the fact that the subjects of the transactions overlap, although the inspections conducted show the opposite. The judge also added that the appointment of an inspection violates the rights of the company, even if the inspection has already been conducted.
Read also
The Ninth Arbitration Court of Appeal of the City of Moscow, after PJSC VimpelCom appealed the first instance decision in favor of the Federal Tax Service, sided with the operator. The issue of cassation remains open.
Now the Federal Tax Service of Russia has two months from the date of publication of the reasoning part of the court decision (i.e. until July 27, 2024) to file a cassation appeal to the Arbitration Court of the Moscow District. This is the last opportunity for the Federal Tax Service to appeal the ruling and win the case.
Leading lawyer in the dispute resolution practice of the EBR law firm Albina Galimova said that, according to statistics, the court rarely changes its decision after several appeals: "The Constitutional Court of the