February 12, 2009

--TOP STORIES--

AUDITORS REFUSE TO UNWRAP BUT WIN

The Supreme Arbitrazhniy (Commercial) Court of Russia on January 21 decided in favour of PWC. This ends a 3-year battle with the Federal Tax Service over charges that the company evaded millions of dollars in taxes.

This might seem like another tax avoidance case, but a closer look suggests a more complicated picture.

Read: http://www.russianlawonline.com/content/PricewaterhouseCoopers-pwc-court...

DISILLUSION IS A VIRTUE

On January 10, 2009 an addition to the anti-corruption legislation consisting of three federal laws was enacted.

'Corruption,' said Vladimir Putin, the Russian Prime Minister, 'is not a disease that can be cured by pills', and clearly this package is by no means the cure.

Read: http://www.russianlawonline.com/content/anti-corruption-legislation-russia

LLCs: RUSSIA GIVES WAY TO SHAREHOLDERS AGREEMENTS

Federal Law #312-FZ 'On Amendments to Part One of the Civil Code of the Russian Federation and other Legislative Acts of the Russian Federation' which comes into force on July 1, 2009 announces a small revolution in the regulation of limited liability companies.

The most remarkable change, of course, is an attempt to bring into light a shareholders' agreement, a stepchild of the Russian law.

Read: http://www.russianlawonline.com/content/llcs-russia-gives-way-shareholde...

RUSSIA CUTS TAXES ON INCOME BUT LEAVES VAT UNTOUCHED

Federal law N 224-FZ cuts taxes on incomes of companies and individuals. The amendments would have been met with a great enthusiasm by the business community just a few months ago, but today the measures introduced by the law are hardly sufficient.

The Russian Parliament (the Duma) adopted Federal law 'On Amendments to Part One, Part Two of the Tax Code of the Russian Federation and other Legislative Acts of the Russian Fe