Tax Code Of The Russian Federation

PART ONE NO. 146-FZ OF JULY 31, 1998
(with the Amendments and Additions of March 30, July 9, 1999, January 2, 2000, December 29, 2000, May 30, August 6, 7, 8, November 27, 29, December 28, 29, 30, 31, 2001, May 29, July 24, 25, December 24, 27, 31, 2002, May 6, 22, 28, June 6, 23, 30, July 7, November 11, December 8, 23, 2003)
Passed by the State Duma on July 16, 1998
Approved by the Council of Federation on July 17, 1998

Part I
Section 5
Chapter 13
Tax Reports
Chapter 14
Tax Control

Chapter 14. Tax Control


Article 82. Forms of Exercising Tax Control


 1. Tax control shall be exercised by tax officials within their scope of competence by conducting tax audits, obtaining explanations from taxpayers, tax agents and payers of fees, verifying accounting and reporting data, examining premises and territories used for generating income (profit), as well as in other forms provided for in this Code.
 Specifics of exercising tax control, when implementing agreements of products' sharing, shall be determined by Chapter 26.4 of this Code.
 2. Bodies of the governmental extra-budgetary funds shall exercise tax control within their jurisdiction over the observance of the legislation on taxes and fees in the order prescribed by this Chapter. The bodies of the governmental extra-budgetary funds shall enjoy the rights and bear the duties stipulated by this Chapter for tax bodies.
 3. The tax bodies, the customs agencies, the agencies of the governmental extra-budgetary funds and the internal affairs bodies shall inform one another in the order, defined by the agreements between them, about the available materials on breaches of the legislation on taxes and fees and tax offences, about measures taken to thwart them, about the tax checks carried out by them, and also exchange with each other necessary information with the aim of fulfilling their tasks.
 4. In the exercise of tax control no allowance shall be made for the collection, storage, use and spread of information about a taxpayer (payer of fees or tax agent), received in violation of the provisions of the Constitution of the Russian Federation, the present Code, the federal laws, and also in contravention of the principle of preserving information that constitutes a professional secret of other persons, in particular a legal secret or an audit secret.

Article 83. Registration of organisations and natural persons


 1. For purposes of tax control, taxpayers shall be subject to registration with the tax authorities in accordance with the location of the organisation, location of its separate units, place of residence, if the taxpayer is a natural person, or at the location of immovable and movable property thereof and for other reasons envisaged by the present Code.
 The organisation consisting of the set-apart subdivisions located on the territory of the Russian Federation, shall be obliged to be registered with the tax body at the location of each own set-apart subdivision.
 The Ministry of Taxation of the Russian Federation shall have the right to determine the specific features of the registration of major taxpayers.
 The specific features of the record-keeping of foreign organisations shall be fixed by the Ministry of Taxes and Fees of the Russian Federation.
 Specifics of taxpayers' registration, when implementing agreements of products' sharing, shall be determined by Chapter 26.4 of this Code.
 2. Registration of taxpayers shall be performed regardless of the availability of circumstances, with which the present Code associates the emergence of an obligation to pay a tax.
 3. The registration of an organisation or an individual businessman with the tax body at the location or at the place of residence shall be carried out on the basis of information contained respectively in the Single State Register of Legal Entities, the Single State Register of Individual Businessmen in accordance with the procedure, established by the Government of the Russian Federation.
 4. When the activity is carried in the Russian Federation through a separate unit, an application for registration of an organisation in the location of the separate unit shall be filed within one month after the creation of the separate unit.
 5. The organisation or natural person's registration and deregistration with the tax body at the location of immovable property and/or transport means owned by them, shall be carried out on the basis of information conveyed by the bodies specified in Article of 85 of the present Code. The organisation is subject to the registration with the tax bodies at the location of immovable property, belonging to it by right of property, right of economic management or of operative management.
 The following places shall be recognized as the location of property:
  1)  for naval, river and air means of transportation used for international haulage - the location (residence) of the owner;
  2)  for means of transportation not listed in subitem 1) of this item - the point (port) of assignment or place of state registration, or, in the absence of such, the location (residence) of the owner.
  3)  for other real estate - the actual location of this estate.
 6. The registration of a private notary shall be carried out by the tax body at the place of his residence on the basis of information conveyed by the bodies specified in Article 85 of the present Code.
 The registration of a solicitor/barrister shall be carried out by the tax body at the place of his residence on the basis of the information conveyed by the solicitor's/barrister's chamber of the Russian Federation subject in accordance with Article 85 of the present Code.
 7. Registration with tax authorities of natural persons other than private entrepreneurs shall be performed by the tax office at the place of residence of the natural person on the basis of information provided by bodies listed in Article 85 of this Code.
 8. In the cases stated in paragraph 2 of Item 5 and Item 7 of the present Article, the tax authority shall immediately notify the natural person in question of the registration of the said person.
 9. Should a taxpayer experience any difficulties with determining the place of registration, the decision shall be made by the tax authority.
 10. The tax bodies on the basis of available data and information on taxpayers shall be obliged to ensure their registration.

Article 84. The procedure for registration and deregistration of organisations and natural persons. Identification number of the tax payer


 1. The registration of an organisation at the location of its set-apart subdivision shall be carried out on the basis of application, the form of which is established by the Ministry of Taxation of the Russian Federation. Upon submission of the application on registration of an organisation at the location of the set-apart subdivision thereof the organisation simultaneously with the application for registration shall also submit duly certified copies of the certificate of registration with the tax body of the organisation at the location thereof, the documents confirming foundation of the set-apart subdivision (if they are available).
 The registration of organisations and natural persons on the grounds, which are not envisaged by Item 3 of Article 83 of the present Code, shall be carried out in accordance with the procedure, established by the Ministry of Taxation of the Russian Federation.
 Upon registration of natural persons the composition of information on said persons shall also include their personal data:
  -  the surname, name and patronymic;
  -  the date and place of birth;
  -  the place of residence;
  -  the details of passport or other document certifying the person of a taxpayer;
  -  the data on citizenship.
 Specific aspects of the registration of foreign organisations depending on the types of the derived income shall be prescribed by the Ministry of Taxation of the Russian Federation.
 2. It shall be the duty of the tax body to register the organisation at the location of the set-apart subdivision, and also organisations and natural persons on the grounds which are not envisaged by Item 3 of Article 83 of the present Code within five days from the date that all the required documents have been filed and to issue them, within the same time limit, the notifications on registration with the tax body. The forms of such notifications shall be established by the Ministry of Taxation of the Russian Federation.
 It is the duty of the tax body, which has carried out the registration of the newly founded organisation or the individual entrepreneur, to issue them the certificate on registration with the tax body. The form of such certificate shall be established by the Ministry of Taxation of the Russian Federation.
 It is the duty of the tax body to carry out the registration of the organisation or the natural person at the location of immovable property belonging to them and/or transportation facilities, and also of the private notaries and lawyers at the place of their residence within five days from the date of receipt of the information from the bodies, indicated in Article 85 of the present Code. The tax body shall, within the same time limit, be obliged to issue or send over by mail the certificate on registration with the tax body and/or the notification on the registration with the tax body after the formats and according to the procedure, which are established by the Ministry of Taxation of the Russian Federation.
 3. Amendments in the information on organisations or individual businessmen shall be recorded by the tax body at the location of the organisation or at the place of residence of the individual entrepreneur on the grounds of the information contained respectively in the Single State Register of legal entities and the Single State Register of individual businessmen, according to the procedure, established by the Government of the Russian Federation.
 Amendments in the information on natural persons who do not belong to individual businessmen, and also on private notaries and lawyers shall be recorded by the tax body at the place of their residence on the grounds of the information to be informed by the bodies indicated in Article 85 of the present Code in accordance with the procedure established by the Ministry of Taxation of the Russian Federation.
 4. If a taxpayer has changed his location or place of residence, he shall be struck off the register by the tax body, in which he was registered:
 an organisation or an individual entrepreneur on the grounds of information, contained in the Single State Register of Legal Persons and the Single State Register of Individual Businessmen, respectively, in accordance with the procedure, established by the Government of the Russian Federation;
 a private notary and a lawyer within five days from the date of receipt of information on the fact of registration from the bodies, which carry out registration of natural persons at the place of residence in accordance with the procedure established by the Ministry of Taxation of the Russian Federation;
 a natural person who does not belong to individual businessmen, within five days from the date of receipt of information on the fact of registration from the bodies, which carry out registration of natural persons at the place of residence in accordance with the procedure established by the Ministry of Taxation of the Russian Federation.
 Registration of a taxpayer with the tax body at the new place of location or at the new place of residence shall be performed on the grounds of the documents, received from tax body at the former place of location or former place of residence of the taxpayer.
 5. In the event when an organisation is liquidated or reorganized, terminates its operations as a private entrepreneur the termination of their registration shall be performed on the grounds of information which is contained respectively in the Single State Register of Legal Entities, the Single State Register of Private Businessmen in accordance with the procedure established by the Government of the Russian Federation.
 In the event when an organisation decides to terminate its operations through its set-apart subdivision the termination of its registration shall be performed by the tax authority on taxpayer's application within fourteen days from the date of filing such application.
 In the event when the powers of a private notary or the status of a lawyer are terminated the termination of registration shall be performed on the basis of information supplied by the bodies, listed in Article 85 of the present Code in accordance with the procedure established by the Ministry of Taxation of the Russian Federation.
 6. Registration and termination of registration with tax service bodies shall be free of charge.
 7. Each taxpayer shall be assigned an taxpayer identification number which will be applicable throughout the entire territory of the Russian Federation and with respect to all taxes and fees, including those payable in connection with the movement of goods across the customs border of the Russian Federation.
 The tax authority shall indicate the TIN in all notifications forwarded to such taxpayer.
 Taxpayers shall indicate their TIN on documents submitted to tax authorities, such as tax returns, reports, applications or other documents, as well as in other cases stipulated by law.
 The procedures and conditions for assigning, using and changing the TIN shall be determined by the Ministry of Taxation of the Russian Federation.
 8. Based on registration data, the Ministry of Taxation of the Russian Federation shall maintain a State Register of Taxpayers in accordance with the procedures established by the Government of the Russian Federation.
 9. From the moment of a taxpayer's registration information about the taxpayer becomes confidential unless otherwise provided for in this Code.
 10. Organizations that are tax agents and have not been registered as taxpayers shall register with the tax authorities at the address of their location using the procedure for organisations-taxpayers set forth in this Chapter.

Article 85. Authorities, institutions, organisations and officials are obliged to provide the tax bodies with the information relating to the registration of taxpayers


 1. The bodies of justice, which issue the licenses on the right of notarial activity and empower the notaries, shall be obliged to notify the tax authority at the place of presence of natural persons who have received the licenses for the right of notarial activity and/or was appointed as a notary engaged in private practice or relieved from it within five days from the date of publication of corresponding order.
 2. The chambers of solicitors/barristers of the subjects of the Russian Federation shall be obliged before the 30st day of each month to inform the tax authority at the place of location of the chamber of solicitors/barristers of the subject of the Russian Federation information about the solicitors/barristers who are members of the chamber of solicitors/barristers of the subject of the Russian Federation, about their chosen form of advocated formation, and also about adopted decisions on suspending (renewing) or terminating the status of solicitor/barrister.
 3. Bodies in charge of registration of natural persons at the place of residence, or registration of certificates of the civil status of natural persons shall notify the tax authority of their jurisdiction of the registration of the natural person at the place of residence, birth or death of natural persons within 10 days after the registration of such persons or events.
 4. The bodies which carry out state registration of the rights to immovable property and deals in it, the bodies which carry out the registration of transport vehicles, shall be obliged to supply information about immovable property situated on the territory under jurisdiction thereof about the transport vehicles registered by these bodies (rights and deals registered by these bodies), and about their owners to the tax bodies at their location within 10 days from the day of corresponding registration.
 5. Bodies of trusteeship and wardship, educational institutions and institutions of medical treatment, institutions of social security and other similar institutions which, in accordance with the federal legislation, exercise trusteeship, wardship or management of the property of a ward shall notify the tax authorities of their jurisdiction of any wardship, trusteeship, of property management responsibilities assumed by them with respect to infants, other minors, persons recognized as incapable by court, capable persons under wardship in the form of patronage, natural persons recognized missing by court, as well as of any subsequent changes in connection with the said trusteeship, wardship or property management arrangements within 5 days from the date of the respective decision.
 6. Bodies (institutions) authorized to perform notary actions and private notaries shall report instances of notarization of an inheritance right, deeds of gift, transactions with immovable property and means of transportation to tax authorities of their jurisdiction within 5 days after the date of the corresponding notarization unless otherwise provided for in this Code.
 7. The bodies engaged in the accounting and/or registration of users of natural resources, and also in the licensing the activity for the use of these resources, shall be obliged to provide information about granting rights to such use, which are objects of taxation, to the tax bodies in their location within 10 days after the registration (issue to a relevant licence or permit) of the user of natural resources.
 8. The bodies which issue and replace documents, certifying the person of a citizen of the Russian Federation on the territory of the Russian Federation, shall be obliged to supply the tax authority at the place of residence of the citizen information:
 about the facts of the replacement of the document certifying the identity of a citizen of the Russian Federation on the territory of the Russian Federation and about amendments in personal data contained in newly issued document within five days as from the day of issuance of a new document;
 about the facts of submission by a citizen to these bodies of the application on the loss of the document, certifying the identity of a citizen of the Russian Federation on the territory Russian Federation within three days as from the date of its submission.

Article 86. Duties of Banks with Regard to Taxpayer Registration


 1. Banks shall open accounts for organisations, private entrepreneurs, only upon presentation of a certificate of registration with a tax authority.
 With respect to organisations private taxpayers the bank shall notify the tax authority of the jurisdiction of the taxpayer of any event of an opening or closing of such an account.
 2. The banks shall be obliged to issue to tax bodies references on the transactions and accounts of organisations and individual entrepreneurs without the status of a legal entity in the order prescribed by the legislation of the Russian Federation within five days of the tax body's motivated inquiry.

Article 86.1. Deleted



Article 86.2. Deleted



Article 86.3. Deleted



Article 87. Tax Checks


 The tax bodies shall carry out documentary and on-site tax checks of taxpayers, payers of fees and tax agents. A tax check may cover only three calendar years of the activity of the taxpayer, the payer of the fee and the tax agent, which directly precede the year of the respective check.
 If during documentary or on-site audit the tax authority finds that it needs additional information on the taxpayer's operations with third parties, the tax authority can request documents that have to do with the operations of the audited taxpayer (the payer of the fee) from these third parties (cross-examination).
 Tax authorities are forbidden to do repeated on-site audits of the same taxes that are either due for payment or were paid by the taxpayer (the payer of the fee) for on already audited tax period, except for cases when such an audit is conducted in connection with re-organisation or liquidation of a corporate taxpayer (organisation paying a fee) or is conducted by a higher-level tax authority as means of exercising control over the operation of the tax authority that conducted the first audit.
 A second on-site audit conducted for the purposes of exercising control over the tax authority shall be conducted by the higher-level tax authority based on a supported resolution of that authority and in compliance with the provisions of the present Article.
 Specifics of conducting tax inspections, when implementing agreements of products' sharing, shall be determined by Chapter 26.4 of this Code.

Article 87.1. Deleted



Article 88. Documentary Tax Audit


 A documentary audit is an examination conducted in the office of the tax authority of the data contained in tax returns and other documents filed by the taxpayer that serve as the basis for computing and paying taxes, as well other documents concerning the taxpayer that the tax authority has in its possession.
 Documentary audits shall be conducted by authorized tax officials as part of their routine duties within 3 months after the taxpayer has filed a tax return and other documents that serve as a basis for assessing and/or paying the tax, unless another deadline has been set forth in legislative or other regulatory acts on taxation, and no specific decision of the head of the tax authority shall be required to conduct such a audit.
 If the audit revels mistakes made when in filling out the forms or inconsistencies in reported data, the taxpayer shall be notified and requested to make the appropriate corrections within the established time limit.
 During a documentary audit the tax authority is entitled to request additional data from the taxpayer, to receive explanations and documents that confirm the correctness of assessment and timeliness of tax payment.
 For the underpaid amount of taxes revealed by documentary audit, the tax authority shall send out a demand for the payment of the tax and interest amount in question.

Article 89. On-site Tax Audit


 On-site tax audits shall be conducted on the basis of a decision made by the head of a tax authority or deputy thereof.
 On-site tax checks may be carried out in respect of one taxpayer (the payer of the fee or tax agent) for one or several taxes. The tax body shall not be entitled to carry out during one calendar year two or more on-site tax checks of the same taxes over one and the same period. An on-site tax check may not last for more than two months, unless otherwise stipulated by this Article. In exceptional cases the higher tax body may extend the duration of an on-site tax check up to three months. When on-site checks are carried out with regard to the organisations having branches and representative offices, the term of checks shall extended by one month in order to verify each branch and representative office. The tax bodies shall have the right to check the branches and representative offices of a taxpayer (a tax agent or a payer of fees), regardless of the conduct of checks of the taxpayer (tax agent or payer of the due) himself. The time of a check shall include the time of the actual stay of the checking officials on the territory of the verified taxpayer, the payer of the fee or the tax agent. The said periods of time shall not include the periods between the service of the demand for the submission of documents on the taxpayer (tax agent) in accordance with Article 93 of this Code and the submission by him of the documents questioned during the conduct of the check.
 An on-site tax audit conducted in connection with a reorganisation or liquidation of a corporate taxpayer, duty-paying organisation, or by a higher tax authority for the purpose of exercising control over the operation of the tax authority that conducted the original audit can be conducted regardless of the time of the previous audit.
 If necessary, authorized tax officials conducting the on-site tax audit can take an inventory of the taxpayer's property, and also conduct visual examinations of production, storage, trade and other premises and grounds used by the taxpayer for earning a profit or for keeping objects of taxation; this visual examination shall be done in accordance with the procedures determined under Article 92 of the present Code.
 If officials of the tax authority conducting the audit have sufficient grounds to believe that documents evidencing transgressions can be destroyed, hidden, altered or substituted, such documents shall be seized in accordance with the procedure in Article 94 of the present Code, and on the basis of an act drafted by these officials. The act on the seizure of documents shall state the grounds for the seizure and include the list of the documents removed. During the seizure of documents, the taxpayer (tax agent or duty-payer) is entitled to make comments that shall be entered into the act upon his request. The documents seized shall be numbered, sewn together with a string and stamped or signed by the taxpayer (tax agent or duty-payer). If the taxpayer (tax agent or duty-payer) refuses to put his stamp or signature on the act, a special note of this shall be made. The taxpayer (tax agent or duty-payer) shall be served a copy of the act.
 The form of the decision by the manager (deputy manager) of a tax body on the conduct of an on-site tax check shall be devised and approved by the Ministry of Taxation of the Russian Federation.
 At the end of an on-site tax check the checking official shall draw up a reference note on the carried check in which he notes the subject of the check and the time for its conduct.
 Specifics of conducting visiting tax inspections, when implementing agreements of products' sharing, shall be determined by Chapter 26.4 of this Code.

Article 90. Participation of a Witness


 1. Any natural person who may have knowledge of any facts that have significance for exercising tax control can be summoned to testify as a witness. Witness testimony shall be entered into a protocol.
 2. The following persons may not be interrogated as witnesses:
  1)  persons who by reason of their young age, physical and psychological drawbacks are unable to correctly perceive circumstances of relevance to tax control;
  2)  persons who have received information needed to exercise tax control in connection with the discharge by them of their professional duties, and similar information shall refer to the professional secret of these persons, in particular a lawyer and an auditor.
 3. A natural person can refuse to testify only on the grounds provided for by the legislation of the Russian Federation.
 4. A witness can testify at the place where he is situated, if due to illness, old age or disability he cannot come to the tax office, and in other cases as decided by the tax official.
 5. Before hearing the witness testimony, the tax official shall warn the witness of the liability for refusal or avoidance to testify or perjury. This shall be entered into the protocol and certified with the signature of the witness.

Article 91. Access to Grounds or Premises by Tax Officials for the Purposes of Exercising Tax Control


 1. Access to the grounds or premises of a taxpayer, a duty payer and a tax agent shall be granted to officials of the tax authority directly involved in conducting a tax audit upon presentation of their official identification and a resolution of the head of the tax authority (or his deputy) on conducting an on-site audit of the taxpayer.
 2. Officials of the tax authority directly involved in the tax audit shall have the right to examine the grounds or premises of the taxpayer used for business operations, or examine objects of taxation to establish whether the actual parameters of these objects match the parameters reported by the taxpayer.
 3. Should access to such grounds or premises (except for living quarters) be impeded for tax officials conducting the tax audit, the head of the audit team (unit) shall draw up a deed to be signed by him and the taxpayer, based on which the tax authority shall be entitled to assess the tax liability from the data on the taxpayer that the tax authority has, or by analogy.
 Should the taxpayer refuse to sign the said deed, a note of this shall be made in the deed.
 4. Unlawfully impeding access to the grounds or premises of a taxpayer to tax officials conducting a tax audit shall constitute a tax offense and entail the liability stipulated in Article 124 of this Code.
 5. Access of tax officials conducting the tax audit to living quarters against the will or without the consent of the natural persons who live there other than in cases established by the federal law or on the basis of a court decision shall not be permitted.

Article 92. Examination


 1. In order to clarify circumstances that are of relevance for the comprehensiveness of the audit, officials of the tax authority conducting an on-site audit shall have the right to examine grounds or premises of the taxpayer being audited, as well as documents and objects.
 2. Examination of documents or objects outside the framework of an on-site tax audit shall be allowed, if the documents or object have been received by tax officials as a result of earlier actions performed in exercise of tax control, or if the owner of these objects gives his consent to their examination.
 3. Examination shall be conducted in the presence of attesting witnesses.
 The person being audited or a representative thereof, as well as experts shall have the right to assist in conducting the examination.
 4. If necessary, photograph-taking, filming, video recording, making copies of documents and other actions can be undertaken at the time of the examination.
 5. A protocol of examination shall be drawn up.

Article 93. Requests for Documents


 1. An officer of the tax authority conducting the tax audit has the right to request that the taxpayer, the fee payer or the tax agent being audited provide the documents needed for the audit.
 The person to whom the request for information is addressed shall send or turn over such documents to the tax authority within five days of the request.
 Documents shall be provided in the form of duly certified copies.
 2. The refusal of the taxpayer, the fee payer or the tax agent to produce the documents/records requested during the conduct of a tax audit, or failure to present them within the fixed terms, the guilty party constitute a tax offence and shall be liable under Article 126 of the present Code.
 In the event of such refusal the tax officer that conducts the tax audit shall seize the needed documents pursuant to the procedure provided for in Article 94 of this Code.

Article 94. Seizing Documents and Other Objects


 1. Seizure of documents and objects shall be performed on the strength of a justified seizure ruling made by an official of the tax authority conducting the on-site audit.
 The said ruling shall be subject to approval by the head or deputy head of the tax authority in question.
 2. Seizure of documents or other objects cannot not be carried out at night time.
 3. Seizure of documents or other objects shall be done in the presence of attesting witnesses and of the person who has the documents and other objects to be seized in his possession.
 Before starting the seizure, the tax official shall present the seizure ruling and brief those present at the seizure on their rights and duties.
 4. The tax officer shall than suggest that the person in possession of documents and other objects to be seized surrender them voluntarily. Meeting with a refusal to voluntarily surrender the documents or objects, the officer shall carry out an enforced seizure.
 Meeting with refusal, on the part of the person from whom documents and other objects are to be seized, to provide access to the premises or other possible locations of documents or objects to be seized, tax officers shall be entitled to obtain access on their own trying to avoid causing unnecessary damage to locks, doors and other objects.
 5. Documents and objects that are not related to the object of the tax audit shall not be subject to seizure.
 6. Seizure of documents and other objects is recorded in a protocol as prescribed by Article 99 of this Code and the present Article.
 7. Seized documents and other objects shall be listed and described in the seizure protocol or in an attachment thereto, indicating the exact name of every item, its quantity, measures, weight and individual characteristics, and if possible, its value.
 8. In cases when seizure of copies of taxpayer's documents is insufficient for conducting control measures and tax authorities have sufficient grounds to believe that the original documents will be destroyed, hidden, modified or replaced, the tax officer shall have the right to seize the original documents in accordance with the provisions of this Article.
 When such documents are seized, copies thereof shall be made and certified by a tax officer. Such copies shall be handed over to the person whose documents were seized. If copies cannot be produced or delivered at the time of the seizure, they shall be handed over by the tax authority to the person whose documents were seized within five days of the date of the seizure.
 9. All seized documents and objects shall be demonstrated to the attesting witnesses and other persons participating in, or attending, the seizure, and, if necessary, packed at the site of the seizure.
 10. A copy of the protocol of seizure of documents/objects shall be served against subscription or mailed to the person from whose possession these documents or other objects were seized.

Article 95. Expert Examination


 1. In cases of necessity in concrete actions of tax control and in on-site tax checks an expert may be attracted on a contractual basis.
 Expert examination shall be conducted in cases when clarification of questions at hand requires specialized knowledge in science, arts, technology or craft.
 2. The questions put before an expert and the assessment that the expert delivers cannot go beyond the scope of his/her expertise. Experts shall be recruited on a contractual basis.
 3. An expert examination shall be ordered by a ruling of an officer of the tax authority conducting the on-site audit.
 The ruling shall specify the reasons for requesting an expert examination; the name of the expert or the name of the organisation where expert examination is to be conducted, questions put to the expert, and materials made available to the expert.
 4. The expert has the right to examine the materials of the audit that relate to the subject of the expert examination and submit requests for additional materials.
 5. The expert has the right to refuse to deliver an expert opinion if the materials made available to him/her are insufficient , or if he/she does not possess the knowledge required to carry out the expert examination.
 6. An officer of the tax authority that has issued the ruling on conducting the expert examination shall present the ruling to the person being audited and brief that person on his rights under Item 7 of this Article.
 7. When an expert examination is ordered and during its conduct, the taxpayer being audited has the right to do the following:
  1)  to challenge the expert;
  2)  to request that the expert be appointed from among the persons that he himself suggests;
  3)  to put additional questions to the expert to provide his/her opinion on them;
  4)  to be present, subject to permission of the tax officer, at the expert examination and offer his/her explanations to the expert;
  5)  to familiarize himself/herself with the expert's opinion.
 8. An expert shall deliver his/her opinion in writing in his/her own name. This opinion shall include the description of the research conducted, the findings and responses to the questions that were asked. Should the expert establish any material facts that lie outside the scope of the original inquiry, the expert has the right to include such findings into his/her opinion.
 9. An expert's opinion or his statement of the impossibility to deliver one shall be presented to the audited taxpayer who shall have the right to present his own explanations or counter-arguments, request that additional questions be put or request an additional or repeated expert examination.
 10. An additional expert examination shall be ordered if the outcome of the first one lacks clarity or is incomplete; the assignment to conduct it can be given to the same or a different expert.
 A repeated expert examination shall be ordered if the first one is invalid or inconclusive and the assignment to conduct it shall be given to a different expert.
 An additional and new expert examination shall be ordered in compliance with the provisions of the present Article.

Article 96. Recruiting a Specialist for Assisting in Exercising Tax Control


 1. If needed, specialists that posses special knowledge and skills and have no interest in the outcome of the case can be recruited on a contractual basis to assist in conducting specific tax control actions including during the conduct of on-site tax checks.
 2. Specialists shall be recruited on a contractual basis.
 3. Participation in the case of a person in the capacity of a specialist shall not preclude the possibility of interrogation of this person, concerning the same case, as a witness.

Article 97. Participation of an Interpreter


 1. Where necessary, an interpreter can be recruited on a contractual basis to assist in exercising tax control.
 2. An interpreter shall be a person who has no stake in the outcome and has a command of the language required for interpretation.
 This provision shall also apply to a person who understands the signs of the mute or the deaf.
 3. The interpreter shall arrive as summoned by the tax official who appointed him/her and adequately perform the interpretation.
 4. The interpreter shall be briefed on the liability for refusal to fulfill or avoidance of fulfilling his duties or for providing a fraudulent interpretation, which shall be recorded in a protocol signed by the interpreter.

Article 98. Attesting Witnesses


 1. When conducting tax control actions, in cases provided for in the present Code, attesting witnesses shall be summoned.
 2. At least two attesting witnesses shall be summoned.
 3. Any natural persons having no stake in the outcome of the case may be summoned as attesting witnesses.
 4. Tax officials shall not be allowed to act as attesting witnesses.
 5. Attesting witnesses shall attest to the fact, content and results of actions performed in their presence, in a protocol. They shall have the right to comment on the actions performed, and such comments shall be entered into the protocol.
 If needed, the attesting witnesses may be interrogated on the above circumstances.

Article 99. General Requirements for Protocols of Tax Control Proceedings


 1. In the cases stated in the present Code, tax control proceedings shall be recorded at the time of the proceedings in protocols. The protocols shall be drawn up in Russian.
 2. The protocol shall state the following:
  1)  the title thereof;
  2)  date and place of proceedings;
  3)  time of beginning and end of proceedings;
  4)  position and name of the person who drew up the protocol;
  5)  full name of every person who assisted in or was present at the proceedings; and, if necessary, their address and citizenship, and their command of the Russian language;
  6)  content and sequence of proceedings;
  7)  material facts and circumstances that were identified in the course of the proceedings.
 3. The protocol shall be read by all those who assisted in, or were present at the proceedings. The said persons shall have the right to make comments which shall be entered into the protocol or attached to the file.
 4. The protocol shall be signed by the tax officer who drew it up, as well as by all those who were either present at, or assisted in, the proceedings.
 5. Attached to the protocol shall be photographs and negatives, films, videotapes and other materials that were produced during the proceedings.

Article 100. Reporting On-site Audit Results


 1. Based on the results of an on-site tax audit, not later than two months after the compilation of the reference note on the check carried out, the authorized tax officials shall draw up a tax audit act in the established form that shall be signed by these officials and the head of the audited organisation (if taxpayer is a legal entity) or the individual entrepreneur, or by their representatives. If the representatives of organisations refuse to sign the act, a record of this shall be made therein. If the indicated persons avoid receiving the Tax Audit Act this shall be reflected in a tax check report.
 2. The tax audit act shall indicate documented facts of tax offences revealed during the audit or the absence thereof, as well as conclusions and recommendation of the auditors on elimination of the revealed breaches and references to the Articles of this Code, which provide for responsibility for this type of tax offence.
 3. The form of the tax audit act and the requirements for drawing it up shall be established by the Ministry of Taxation of the Russian Federation.
 4. The tax audit act shall be served to the head of the organisation, if the taxpayer is a legal entity, or the entrepreneur, if the taxpayer is a natural person, engaged in entrepreneurial activities without forming a legal entity (or their representatives), against a receipt, or delivered in some other way that testifies of the date of its receipt by the taxpayer or its representatives. If the tax audit act is mailed by registered mail to the taxpayer, the sixth day after it was sent shall be considered as the date of service.
 5. If the taxpayer does not agree with the facts stated in the audit act, or with the conclusions and recommendations of the auditors, he is entitled to file a written explanation of his motives for refusing to sign the act and/or objections concerning the act as a whole or its individual provisions with the appropriate tax authority within two weeks from the data of the receipt of the audit act. The taxpayer is also entitled to attach documents (of certified copies thereof) that confirm the grounds for objections or motives for refusing to sign the audit act to the written explanation (objection) or to deliver them to the tax authority within the agreed time limit.
 6. Upon expiry of the time period indicated in the preceding part of this Article and within 14 days from the date of such expiry the head of the tax authority (or his deputy) shall examine the tax audit act, and documents and materials presented by the taxpayer.

Article 101. Proceedings in a Case of Tax Offences Committed by a Taxpayer, a Fee Payer or by a Tax Agent (Rendering a Decision on the Results of Examination of Audit Materials)


 1. Check materials shall be examined by the manager (deputy manager) of a tax body. In the event of submission by the taxpayer of written explanations or objections to the report of a tax check, the materials of the check shall be examined in the presence of the officials of a taxpaying organisation or an individual entrepreneur or of their representative. The tax body shall notify the taxpayer about the time and place of the examination of the check materials well in advance. If despite the notification the taxpayer failed to appear, the check materials, including the objections, explanations and other documents and materials presented by the taxpayer shall be considered in his absence.
 2. Based on results of audit materials examination, the head of the tax authority (or his deputy) shall render a decision to:
  1)  to hold the taxpayer fiscally responsible for committing a tax offence;
  2)  to not hold the taxpayer responsible for committing a tax offence;
  3)  to conduct additional tax control measures.
 3. A resolution on holding the taxpayer responsible for committing a tax offence shall state the circumstances of the tax offence committed by the taxpayer as established by the tax audit, documents and other facts that confirm the said circumstances, arguments brought forth by the taxpayer in his defense and results of verifying these arguments, the decision to hold the taxpayer fiscally responsible for concrete tax offences indicating the articles of the law stipulating these offences, and the measures of liability applicable thereto.
 4. Based on the decision to hold the taxpayer responsible for committing the tax offence, the tax authority sends out a demand for payment, requesting the taxpayer to pay tax arrears, and penalty interest.
 5. A copy of the decision of the tax body and the demand for payment shall be served to the taxpayer or his/her representative, against a receipt or are delivered in another way which testifies to the date of the receipt by the taxpayer. If it is impossible to hand the decision of a tax body to a taxpayer or his representatives by the above-said methods, this decision shall be sent by registered mail and shall be deemed to be received upon the expiration of six days after its dispatch.
 6. Non-observance, by tax officials, of the requirements established in this Chapter, shall constitute grounds for a higher tax authority or court to annull the decision of the tax authority.
 7. With respect to tax offences revealed by the tax authority for which individual taxpayers or officials of corporate taxpayers are punishable under administrative law, the authorized official of the tax authority that conducted the audit draws up a protocol of an administrative offence. Examination of such tax cases and application of administrative sanctions with respect to taxpayer officials (if a legal entity) or individual taxpayers (if entrepreneurs) at fault shall be conducted by the tax authorities in accordance with the administrative legislation of the Russian Federation and subjects of the Russian Federation.
 8. The provisions of this Article shall also apply to fee payers and tax agents.

Article 101.1. Proceedings in the Case of the Code-stipulated Breaches of the Legislation on Taxes and Fees, Committed by Persons Who Are Not Taxpayer, Duty Payers or Tax Agents


 1. Upon the discovery of facts testifying to the violation of the legislation on taxes and fees (including tax offences) by persons who are not taxpayers, fee payers or tax agents, the tax official shall draw up in a statutory manner a report to be signed by this official and the person who has committed a breach of the legislation on taxes and fees. A corresponding entry shall be made in this report to testify the fact of the refusal of the person who has committed a breach of the legislation on taxes and fees to sign this report. When the aid person evades reception of the report, the tax official shall make a relevant entry in the report.
 2. The report shall indicate the documentally confirmed facts of a breach of the legislation on taxes and fees, and also the conclusions and proposals of the official who discovered the facts of breaking the legislation on taxes and fees to eliminate the revealed breaches and to apply sanctions for breaking the legislation on taxes and fees.
 3. The form of the report and the demand for its drawing up shall be established by the Ministry of Taxation of the Russian Federation.
 4. A report shall be presented to the persons who have committed the legislation on taxes and fees against a receipt or conveyed in any other way testifying to the date of its receipt. In the event of sending the said report by registered mail the sixth day beginning with the date of its dispatch shall be deemed to be the date of delivering the report.
 5. A person who has committed a breach of the legislation on taxes and fees shall have the right, in the case of disagreement with the facts set forth in the check report, and also with the conclusions and proposals of checking officials, to submit, within two weeks from the day of the receipt of the check report, to the respective tax body his written explanation of the reasons for the refusal to sign the report or for the objection to the report as a whole or to particular provisions, In this case the person who has committed a breach of the legislation on taxes and fees shall have the right to append to the written explanations (objections) documents or their certified copies confirming the validity of objections or reasons for not-signing the check report or to transfer such documents to the tax body in the agreed period of time.
 6. Upon the expiry of the time indicated in Item 5 of this Article, within 14 days the manager (deputy manager) of the tax body shall consider the report which has fixed the facts of breaking the legislation on taxes and fees, and also the documents and materials submitted by the person who has committed a breach of the legislation on taxes and fees.
 7. If a person who has breached the legislation on taxes and fees fails to submit explanations of, or objections to, the report, the checking materials shall be examined in the presence of this person or of his representatives. The tax body shall notify the person who has committed a breach of the legislation on taxes and fees about the time and place of the examination of these materials well in advance. If the person who has breached the legislation on taxes and fees has not appeared despite the notification, the report and the materials appended to it shall be examined in his absence.
 8. The manager (deputy manager) of a tax body shall pass his decision according to the results of the examination of the report and the appended materials:
  1)  on the calling to account of a person for breaking the legislation on taxes and fees;
  2)  on the refusal to call to account a person for breaking the legislation on taxes and fees;
  3)  on additional measures of tax control.
 9. The decision on calling a person to account for breaking the legislation on taxes and fees shall set forth the circumstances of the committed breach, indicate documents and other information confirming the said circumstances, the reasons adduced by the person who is called to account in his defence, and the results of checking these, the decision on calling the person to account for concrete breaches of the legislation on taxes and fees, with an indication of the Articles of this Code which provide for such breaches and the applicable measures of responsibility.
 10. A demand for penalty payment shall be forwarded to the person on the basis of the passed decision on calling him to account for breaking the legislation on taxes and duties.
 11. A copy of the decision taken by the tax body manager and the demand shall be handed to the persons who has breached the legislation on taxes and fees against a receipt or shall be conveyed in any other way that testifies to the date of its reception by the taxpayer or by his representative. If a copy of the tax body's decision and/or demand may not be handed to him, they shall be deemed to be received by the person who has breached the legislation on taxes and fees or by his representative upon the expiry of six days after they were sent by registered mail.
 12. Non-observance by tax officials of the requirements of this Article may be a ground for the repeal of the decision of the tax body by a higher tax body or by a court of law.
 13. The authorized official of a tax body shall draw up a record of administrative offences about the breaches of the legislation on taxes and fees revealed by the tax body, for which persons are liable to administrative responsibility. Cases of these offences and of the application of administrative sanctions to the persons guilty of their commission shall be examined by tax bodies in accordance with the legislation on administrative offences.

Article 102. Taxpayer Confidentiality


 1. Any information regarding a taxpayer received [information] by a tax authority, the bodies of internal affairs, the agency of a governmental extra-budgetary fund or a customs agency shall be considered confidential, with the exception of the following:
  1)  information disclosed by the taxpayer at his own discretion or with his consent;
  2)  information on the TIN;
  3)  on violations of tax and fee legislation and sanctions for these violations;
  4)  information provided to tax (customs) or law-enforcement agencies of other nations in accordance with international treaties (agreements) on mutual cooperation between tax (customs) or law enforcement authorities of respective countries (in the part that concerns information submitted to these agencies), to which the Russian Federation is a party.
 2. Confidential taxpayer information shall not be subject to disclosure by tax authorities, the bodies of internal affairs, the agencies of the governmental extra-budgetary funds and customs agencies, their officials, recruited specialists, or experts, with the exception of the cases stipulated in federal law.
 Disclosure of confidential tax information shall include, without being limited to, the use of information, which constitutes a technological or commercial secret of the taxpayer, that came into possession of a tax official, the bodies of internal affairs, an agency of an governmental extra-budgetary fund or a customs agency, a participating specialist or expert while performing their duties.
 3. Confidential taxpayer information that came into possession of the tax authority, the internal affairs bodies, the agencies of the governmental extra-budgetary funds or the customs agencies shall be subject to special storage and access arrangements.
 An access to the data constituting tax secret shall be authorized to the officials included into the lists determined by the Ministry of Taxation of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation and State Customs Committee of the Russian Federation, as well as bodies of state off-budget funds.
 4. Loss of documents containing confidential tax information, or disclosure of such information shall entail liability under federal laws.

Article 103. Inadmissibility of Causing Unlawful Damage While Exercising Tax Control


 1. In exercising tax control, causing unlawful damage to taxpayers, fee payers, tax agents or to their representatives or property held in their possession, use, or disposal shall be inadmissible.
 2. Damage done by unlawful actions of tax authorities or their officials in exercising tax control shall be subject to full compensation, including the compensation for loss of expected gains (missing/unearned profit).
 3. For causing damages to the taxpayer, the tax agent or their representatives by their unlawful actions, tax authorities and their officials shall be held liable under federal laws.
 4. Damage done to the taxpayer, the tax agent or their representatives by lawful actions of tax officials shall not be subject to compensation, except in the cases set forth in federal laws.

Article 104. Statement of Claim for Collecting a Tax Sanction


 1. Having rendered a ruling on holding the taxpayer (or other obligor) responsible for a tax offence, the respective tax authority files a lawsuit with a court for the collection of the tax sanction established under the present Code from the person being held responsible for committing the tax offence.
 Prior to filing a lawsuit with a court, the tax authority shall advise the taxpayer (or other obligor) to pay the amount of the tax sanction voluntarily.
 If the taxpayer (or other obligor) refuses to pay the amount of the tax sanction voluntarily or does not make the payment within the time limit stated in the demand for payment, the tax authority shall file a statement of claim in at court for the collection of the tax sanction established under the present Code for committing the tax offence.
 2. Lawsuits/petitions for collecting tax sanctions from organisations or individual entrepreneurs are filed with an arbitration court, and lawsuits/petitions for collecting tax sanctions from individuals other than individual entrepreneurs - with a court of general jurisdiction.
 Attached to the statement of claim shall be the protocol of the tax offence and other materials of the case produced in the course of the tax audit.
 3. If necessary, along with filing a statement of claim for collecting the tax sanction from the person being held responsible for committing the tax offence, the tax authority can file a motion in court to secure the claim in the order envisaged by the civil procedural legislation of the Russian Federation and by the arbitration procedure legislation of the Russian Federation.
 4. The rules of this Article shall also apply in case of calling a taxpayer to account for breaking the legislation on taxes and fees in connection with the shifting of goods across the customs border of the Russian Federation.

Article 105. Hearing of Cases and Execution of Rulings to Collect Tax Sanctions


 1. Cases for collection of tax sanctions instituted by tax authorities against organisations or individual entrepreneurs shall be tried by courts of arbitrage pursuant to the law of arbitral procedure of the Russian Federation.
 2. Cases for collection of tax sanctions instituted by tax authorities against natural persons other than individual entrepreneurs shall be tried by courts of general jurisdiction pursuant to the law of civil procedure of the Russian Federation.
 3. Execution of effective court rulings on collecting tax sanctions shall be performed pursuant to the Russian Federation law of final process.

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