Representation in Tax Disputes
Legal support and legal representation in tax disputes
Attracting a competent specialist to resolve various kinds of issues as a representative has become a common action in the business environment, and given that interaction with various state regulatory bodies requires knowledge and practice in a particular area, the participation of a qualified lawyer or accountant greatly simplifies doing business. In particular, such representation is beneficial for business both in interaction with tax authorities and in tax disputes.
The Tax Code of the Russian Federation in Article 26 expressly provides for the possibility of a taxpayer to participate in relations regulated by the legislation on taxes and fees through a legal or authorized representative. At the same time, the presence of a representative does not deprive the taxpayer of the right to independently participate in interaction with the tax authorities.
Taking into account the norms of tax legislation, an authorized representative of a taxpayer is an individual or legal entity authorized by a taxpayer to represent his interests in relations with tax authorities (customs authorities), other participants in relations regulated by legislation on taxes and fees. At the same time, it is important to note that an authorized representative differs from a legal one in that the legal representative does not require a power of attorney to represent the interests of the organization, he represents the organization on the basis of the law or its constituent documents, often it is the head of the company. Considering that the representative acts on behalf of the organization, it should be noted that the actions (inaction) of the legal representatives of the organization, committed in connection with the participation of this organization in relations regulated by the legislation on taxes and fees, are recognized as actions (inaction) of this organization. At the same time, officials of tax authorities, customs authorities, internal affairs authorities, judges, investigators and prosecutors cannot be authorized representatives of the taxpayer. This is due not only to the requirements of tax legislation, but also to the requirements of the legislation on the civil service as well.
At the same time, the powers of the representative must be documented in accordance with the current legislation, such confirmation is a power of attorney issued in the manner established by the civil legislation of the Russian Federation, in accordance with which a written authorization issued by one person to another person or other persons for representation to third parties. Meanwhile, an authorized representative of a taxpayer – an individual entrepreneur (an individual who is not an individual entrepreneur) may be a person who exercises his powers on the basis of a notarized power of attorney. At the same time, the taxpayer can issue a power of attorney to represent interests in the tax authorities, both for full representation and for certain types of representation, for example, to obtain an audit report from the tax authority.
The power of attorney is drawn up in accordance with the requirements of the current legislation and signed:
- on behalf of a legal entity – the head of the organization and is certified by the seal of the company, if any;
- on behalf of an individual taxpayer, including an individual entrepreneur – an individual with the notarization of such a power of attorney.
At the same time, the following powers can be transferred in the power of attorney for participation in tax disputes:
- submission of tax returns;
- participation in the tax audit;
- submission of objections to the act of tax audit;
- obtaining a tax audit report;
- explanations during a tax audit;
- legal representation in tax and judicial authorities, etc.
The powers transferred to a representative can be varied, the main condition for their transfer and receipt is their compliance with the requirements of the current legislation.
It is also important to note the conditions for the termination of the power of attorney and representation, these include:
- termination of activities of the legal entity from which the power of attorney was issued;
- revocation of the power of attorney by the person who issued it;
- expiration of a power of attorney, etc.
In case of termination of representation by an authorized person, the taxpayer must notify the tax authority about this. This is due to the fact that the authorized person may continue to act on behalf of the entrepreneur against his interests, while the responsibility for such actions will be borne by the entrepreneur who issued the power of attorney to the authorized person.
Representation of entrepreneurs in tax disputes by competent and experienced specialists greatly simplifies their interaction with the tax authorities, and also allows them to conduct business in accordance with the requirements of tax legislation with minimal risks of violation of such legislation. At the same time, representatives to a greater extent reduce the time of interaction of the business community for interaction with authorities, including tax authorities. Having experience in communication with the tax authorities, representatives will help, prompt, and assist entrepreneurs in tax matters, which in turn will allow entrepreneurs to reduce the risks of bringing them to undesirable liability from the tax authorities.
- Advising clients on tax disputes
- Analysis of the subject of a tax dispute
- Assistance to clients in obtaining representation for the tax authorities
- Preparation of necessary documents for conducting tax disputes
- Legal representation in tax authorities