Recovery of Losses Caused by Tax Authorities
Legal support in recovering of losses caused by illegal decisions of tax authorities
Tax legislation is extensive and varied, while the frequency of its changes certainly affects the occurrence of disputes with the tax authorities in the conduct of business. The occurrence of such situations is due to the fact that both business and tax authorities may misinterpret the rules of law and apply it in practice, and also cannot track changes to legislative acts, as a result of which disputes arise between entrepreneurs and tax authorities.
In this regard, the infliction of losses by illegal decisions of the tax authorities is subject to compensation to the entrepreneur. This rule is enshrined in Article 21 of the Tax Code of the Russian Federation, which says that the taxpayer has the right to full compensation for losses caused by illegal acts of tax authorities or illegal actions (inaction) of their officials. At the same time, Article 103 of the Tax Code of the Russian Federation also reflects a provision that also states that losses caused by unlawful actions of tax authorities or their officials during tax control are subject to compensation in full, including lost profits (lost income) . At the same time, it should be noted that, by virtue of Article 15 of the Civil Code of the Russian Federation, losses are understood as expenses that a person whose right has been violated has made or will have to make to restore the violated right, loss or damage to his property (actual damage), as well as lost income, which this person would have received under normal conditions of civil circulation if his right had not been violated (lost profit).
At the same time, with rare exceptions, through correspondence and filing a claim, it becomes possible to receive compensation for losses caused by the tax authorities. Often, to resolve a dispute on compensation for losses caused by tax authorities, one has to go to court. This is also due to the fact that compensation for damages is carried out at the expense of the federal budget, for the expenditure of which, especially for damages, as a rule, a court decision is necessary.
At the same time, it is not an easy task to prove the fact that the losses were caused by the action (inaction) of the tax authority. In addition, it is also necessary to determine a number of other issues to resolve the conflict with the tax authority:
- Identify the defendant. As a rule, this is a territorial body of the tax service;
- Reimbursement of court costs (expenses for representation in court). By virtue of Article 106 of the Arbitration Procedure Code of the Russian Federation, legal costs associated with the consideration of a case in an arbitration court include the costs of paying for the services of lawyers and other persons providing legal assistance (representatives);
- Amount of Compensation for losses is carried out in full.
In addition to the issues identified, there may be other tasks that need to be resolved in court when recovering damages, this depends on the individual characteristics and circumstances of the case. It is important to conduct a thorough analysis of the company’s activities and identify cases of illegal decisions of the tax authorities that caused losses. To apply to the judicial authorities for resolution of a dispute and compensation for losses, you must:
- establish the fact of causing harm by the tax authorities;
- gather evidence base;
- calculate the damages caused;
- prepare documents and submit them to the court;
- participate in court hearings.
One of the most difficult and important stages is to establish the fact of the illegality of actions (inaction) of the tax authority and the causal relationship between the actions of the tax authority and the infliction of losses. It is important to note that disputes with tax authorities can cause irreparable harm to doing business. Such situations arise, for example, when all the financial resources of the company, both on the accounts and received from counterparties, are blocked by tax authorities, which prevents full-fledged entrepreneurial activity. In such a situation, the resolution of disputes with the tax authorities is a priority, and the further activity of the company depends on it.
Building the structure of a litigation for compensation for losses caused by illegal decisions of the tax authorities, as a rule, depends on the qualifications and experience of a lawyer representing the interests of the company in such a dispute. Often, in order to resolve a dispute with the tax authorities, the involvement of a competent specialist allows an entrepreneur to save time on preparing documents and to participate in court, as well as to minimize the risks of obtaining a negative decision.
Taking into account the fact that violation of the legislation in the field of taxation by the tax authorities can lead to adverse consequences and significant losses for the entrepreneur, an important point is not only the participation of a qualified lawyer at the stage of compensation for losses, but also the full support of the company's activities. At the same time, with competent legal support of the company's activities, the risk of losses caused not only by tax authorities, but also by other regulatory authorities, is minimized.
- Advising clients on compensation for losses caused by illegal decisions of tax authorities
- Legal analysis of the situation of causing losses to entrepreneurs by illegal decisions of the tax authorities
- Preparation of documents for appealing illegal decisions of tax authorities
- Representing the interests of the client in resolving disputes on compensation for losses caused by illegal decisions of the tax authorities