Our Client Will Pay USD 10 m Less!

IPTG International Tax Practice
Department  was able to conclude an
agreement with the Cyprus tax service, which makes it possible to reduce
payments to the Cyprus budget by USD 10 m.

The tax agreement allows
one of our client companies legally reduce their tax liabilities by the said
amount. It is important to note that the savings were achieved at the expense
of the budget of Cyprus, while the Russian budget was not affected.

In most developed countries, it is a standard practice for a taxpayer to apply
to tax authorities in order to deal with points at issue. The request presents
the arguments of the taxpayer that explain why the taxpayer should be allowed
to pay less tax. After that, a discussion begins with the internal revenue
service, based on which an agreement is concluded on the disputed issue. Such
an agreement is usually called a tax ruling. Unlike the explanations issued by
the Russian Ministry of Finance or the Federal Tax Service, the agreement with
foreign tax authorities is usually binding for the internal revenue service.

In the obtainment of the ruling, strong support was provided by our Cypriot
partners, PKF company. We are sincerely grateful to them for the fruitful
cooperation!

“I thank the staff of the International Tax Practice Department for
their dedicated work and congratulate them on the brilliant solution to a
difficult problem!” Dmitry Kvitko, the head of the department, says.