Challenging the tax authority's decision to assess additional corporate property tax, and defending the client's property interests.
The company correctly recorded a non-residential building and a plot of land as fixed assets in line with the accounting standards (FSBU) and filed an amended tax return. Following its audit, the tax authority assessed additional property tax and held the company liable.
The tax authority insisted the additional assessment was lawful, arguing for a different point at which the tax obligation on the contribution of property to capital arose, and refused to take into account the taxpayer's application of the accounting standards' methodology.
We carried out a comprehensive review of the dispute and built a legal position establishing the correct point at which the property-tax obligation arises on a capital contribution, read together with the accounting rules. We prepared and filed an application with the commercial (arbitrazh) court to have the non-normative act declared invalid.
The court partially granted the claimant's demands.
The project's value is measured by the financial loss it prevented for the company. The dispute makes a significant contribution to the case law resolving conflicts between accounting rules (FSBU) and the point at which a taxable object for property tax arises on the contribution of assets to capital.
Challenging tax authority decisions imposing liability; property-tax disputes; the tax consequences of applying the new accounting standards when recognizing real estate on the balance sheet.
