WatersOAG Legal Alert: Russian Tax Authorities Actively Identify Inaccurate Information about Companies and Take Measures

Russian tax authorities are actively working to identify false company information. These measures began in 2016 and have continued throughout 2017, pursuant to an Order of the Federal Tax Service[1].

Representatives of the Federal Tax Service are taking measures to identify inaccurate company information, including having agents of the tax service travel to a company’s locations (their registered addresses). As a result, tax authorities notify companies of inaccurate information they uncover and provide 30 (thirty) days’ notice to register correct information in the Unified State Register.

Over the past 2 months, such notices have been received by a variety of companies in Moscow.

If  companies do not take measures to register their correct information, the tax office makes a record of false data in the Unified State Register (“Register”). The information contained in the Register is public, so a record of false data may adversely affect a company’s reputation.

A company is then given 6 months to correct the information in the Register (according to the latest amendments from September 1, 2017). If incorrect information in the register is not corrected, tax authorities have the right to exclude such company from the Register without a court order.  Previously, such exclusion was possible, but only by a court decision.

Companies are liable for the losses caused to the other participants of the civil turnover as a result of a company’s failure to maintain accurate information in the public Register (Art. 51 of the Civil Code). Also, companies bear risks of not receiving legally significant information (such as mail for example), if such information was not delivered to them because of the inaccurate data in the Register (Art.165.1 of the Civil Code).

A statement of false data that may provoke an inspection of any company by tax authorities may be sent to the tax office by any person. The decision of tax inspection once entered may be appealed to a higher authority or in court according to the rules of Chapter 24 of the Arbitration Procedure Code[3].

[1]Order of the FTS of Russia from 11.02.2016 N MMV-7-14 / 72

[2]Federal Law of 28.12.2016 N 488-FZ” On Amendments to Certain Legislative Acts of the Russian Federation

“[3]Letter FTS of Russia from 07.06.2017 N HD-4-14 / 13154 @ on the direction of “judicial review disputes involving the registration authorities of N 2 (2017)”

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