Tax Law and Tax Disputes
Legal support of taxation and tax disputes
The financial and economic activities of entrepreneurs are associated with regulatory authorities and, in particular, with tax authorities, interaction with which is inevitable, due to the mandatory taxation of income received.
The decisions of the regulatory authorities do not always coincide with the opinion of the entrepreneur in terms of taxation, which leads to disagreements that are resolved either by a higher tax authority (pre-trial settlement of disputes) or by the court. Such disagreements are called tax disputes, such disputes can be divided into several types:
- Incorrect determination of the taxable base, including deliberate and, as a result, additional taxes. When conducting a desk audit, shortcomings in conducting financial activities (understating the tax base, attaching fictitious documents, etc.) may be detected, which results in additional taxes and a fine.
- Refusal to refund or offset overpaid tax. This type of dispute is quite common, the inconsistency of the tax authorities and entrepreneurs in terms of paying taxes leads to situations where the entrepreneur believes that he will pay more tax than he should, and the tax authorities, having studied all the submitted documents, that there is no fact of overpaid tax.
- Tax avoidance. Some businesses evade paying taxes, in which case the initiator of the tax dispute is not the entrepreneur, but the tax authority.
- Bringing to responsibility for violation of tax laws. For violation of tax laws, entrepreneurs and business owners are brought to administrative responsibility, but in case of serious offenses, criminal liability can also be established.
All tax disputes have several stages, which sequentially follow one after another:
- Formation of a dispute. A situation arises when an entrepreneur interacts with the tax authorities and one of the parties does not agree with the decision or opinion of the other party, which is why a disputable situation arises;
- Pre-trial stage. This is an opportunity to resolve a dispute before going to court. At this stage, the parties to the dispute are trying to resolve the conflict that has arisen;
- Judicial stage of a tax dispute. At this stage, a statement of claim is filed with the judicial authorities by the dissenting party with the mandatory attachment of evidence of its position. It is important to note that only those documents that were submitted to the tax authorities for conducting a desk audit can be submitted as evidence to the judicial
Part of the disputes between the tax authority and the taxpayers can be resolved at the stage of formation of the dispute or the pre-trial stage, which allows not to drag out the tax dispute and not go to court, and also save not only time to resolve the dispute, but also money to pay the state fee and representative. Often, both parties to the dispute try to resolve the conflict situation at the pre-trial stage, the tax authorities monitor incoming complaints and try to respond to them within the time limits established by law. At the same time, the Federal Tax Service generates explanatory letters on certain situations that arise in the application of tax legislation.
It is also important to note that an important factor in the emergence of tax disputes is a change in tax legislation or, for example, the introduction of restrictions and prohibitions, depending on the economic and political situation in the country and the world.
Tax lawyers (lawyers with expertise in tax law)
Tax disputes arise due to the fact that the entrepreneur does not track changes in regulatory documents governing tax rules without tax lawyer, which leads to situations of non-compliance or untimely enforcement of tax legislation. This is a violation for which the tax authorities are held accountable.
Given the instability of the economic and political situation, changes in tax legislation can occur quite quickly. At the same time, it is often not possible for an entrepreneur to track these changes on his own. The area of taxation has many subtleties that are used by the tax authorities to hold accountable or charge additional taxes.
The participation of a tax lawyer in accompanying the taxation of a business or in resolving a tax dispute that has already arisen contributes to a faster resolution of a conflict situation. This becomes possible due to the experience and competence of the involved lawyers specializing in tax law, as well as due to the knowledge of the current legal norms in the field of tax legislation.
- Tax consultancy
- Accompanying tax audits
- Appealing of tax inspection acts
- Legal representation in tax disputes
- Refund of excessively collected taxes
- Compensation for losses caused by illegal decisions of tax authorities
- Illegal tax benefit cases
- Representation for VAT refund cases
- International taxation
- Issues of taxation of foreign companies