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7.4. International Experience of Tax Ruling and the Possibility of Implementation in Russia

May 28 2015
15:30 - 17:30
Hall V

Track: 7. Investments/ Finance

Description

Issues which will be discussed under the panel session include:

  • International experience of tax ruling as a way of alternative dispute resolution processes;
  • Different law regulation of tax ruling and their brief description;
  • Basics and principles of tax ruling;
  • Tax disputes resolution in Russia;
  • Conception and basic provision of legislative proposal of tax ruling in Russia.

The advance tax ruling institution ensures stability and clearness of legal regulation and is an effective tool of a pre-trial tax dispute resolution.

To avoid potential complexities in tax law application to concrete transactions and operations, foreign jurisdictions use the advance tax ruling institution, which permits to qualify operation so tax risk can be mitigated.

International practice of tax administration knows various legal mechanisms of an advance tax control: Pre-Filing Agreement, Private Letter Ruling (United States), General Binding Ruling (Germany), Advance Tax Rulings (Canada), etc.

In global practice the advance tax ruling can vary in terms of its function in legislation, types of issues which are subject to ruling and arrangements for using the ruling. The common feature of all the types of ruling is that taxpayers receive conclusion about the taxation of a planned transaction from tax authorities in advance. This allows preventing future tax disputes.

This institution helps businesses to plan their future activity and forecast tax risks during the conclusion of a transaction. Tax authorities also benefit from getting information about future transactions, as they better understand business processes of a concrete taxpayer or a certain industry. At the same time, tax authorities control taxpayers’ performance of tax ruling.

Russian tax legislation lacks the advance tax ruling institution. According to the results of a horizontal monitoring pilot project, the tax monitoring institution was enshrined in the law, which provides an opinion of tax authorities on a performed transaction.

This subject is important since the order to explore the possibilities of the introduction of the advance tax ruling institution in Russia is mentioned in the workflow chart entitled “The improving of tax administration,” which was ratified by the Government Decree dated Feb. 10, 2014, No. 162-r. Currently, as part of the tax legislation enhancement programme, this institution is being considered for introduction into the Tax Code of the Russian Federation.

The round table will highlight the main conceptual suggestions, which were developed during the production of a draft law. Discussion of the issues related to this new legal initiative, as well as examination of foreign experience will allow developing a proper mechanism suitable for the Russian tax system.

The panel will bring together representatives of major Russian and foreign companies and tax authorities.

Moderator

Sergey Arakelov

Deputy Head, Federal Tax Service of the Russian Federation


Biography

Born on February 3, 1975.

Education, academic degree:

In 1996 graduated from Moscow State Law Academy. Ph.D. in Economics.

Professional experience:

Works in tax authorities since July 1996. Acted as a deputy of various officers, from 1st category legal counsel of the Moscow State Tax Inspectorate to Head of Inter-District Inspectorate of the Moscow Federal Tax Service No 47.

In September 2010 was appointed Head of Federal Tax Service's Legal Office.

In December 27, 2010 was appointed Deputy Head of Federal Tax Service by the executive order of the Russian Federation Ministry of Finance dd. 27.12.2010 No 1557.

Class 3 Active State Advisor of the Russian Federation by the Decree of the RF President dd. 14.03.2012 No 303 "On the Appointment of the Russian Federation State Civil Service Class Ranks to Federal Civil Servants".

Coordinates and controls the following activities:

  • Legal Administration;
  • Administration for Pre-Trial Fiscal Disputes Settlement;
  • Administration for Taxpayer Registration and Accounting.

Coordinates legal activities across tax authorities, ensures coordinated position of tax authorities in courts, ensures the conformity of regulatory acts issued by Federal Tax Service to the RF legislation.

Coordinates the examination of fiscal disputes between Russian tax authorities and taxpayers.

Speakers

Vellore Anandarajan

Joint Secretary (Tax Policy & Legislation) of Department of Revenue, Government of India


Biography

Education, academic degree:

Master of Arts (M.A.); Bachelor of Law (L.L.B.)

Professional experience:

26 years of experience in Indian Revenue Service (Income-tax)

Specialist area, professional interests:

Income-tax law; other direct taxes.

Achievements, rewards:

Award for investigation of suspicious activity reported by the Financial Intelligence Unit (FIU-Ind.)

Publications, scientific works:

Authored taxpayer education booklet on tax assessment of charitable entities; contributed to knowledge-sharing publication ‘Let us Share’; Member or editorial team of Departmental publication on best practices.

Richard Batch

Director of Corporate Taxation, International Air Transport Association


Biography

Education, academic degree:

Honours Economics Degree from Wilfrid Laurier University, Canada.

Chartered Professional Accountant, Canada.

Professional experience:

Director, Corporate Taxation, International Air Transport Association.

12 years in advisory and industry roles in Canada, and the past 10 years at International Air Transport Association.

Professional interests:

International income tax and indirect tax.

Chirachawee Intachan

Secretary, Central Tax Court of the Kingdom of Thailand


Biography

Education, academic degree:

Master of Law, University of Pennsylvania, USA.

Master of Law, Kyushu University, Japan.

Professional experience:

Solicitor, Linklaters&Alliance.

Judge of the President office of the Supreme Court.

Judge of the Central Labour Court.

Judge of the Central Tax Court.

Secretary of the Central Tax Court.

Specialist area, professional interests:

Business Law, Taxation and Labour Law.

Achievements, rewards:

Outstanding Student Activism Award, Chulalongkorn University.

Japanese Scholarship for Young Leader Programe (YLP).

Publications, scientific works:

Tax Court Mediation: Reshaping the Current Practice in Thailand.

Japanese Contract Law in International Context.

David John

CEE Managing Partner Tax and Legal Services, PwC


Biography

Education, academic degree:

Bachelor honors degree from the University of Manchester.

Professional experience:

Central and Eastern European Tax Leader, PricewaterhouseCoopers.

25 years with PwC, partner since 1996. Worked in Russia and UK in client facing roles, focusing on corporate and international tax issues for large corporations, including extensive experience of advising on managing relationships with tax authorities in many jurisdictions.

Professional interests:

Complex tax matters with large companies, significant cross border structuring of transactions and entities, tax function process improvement, dispute resolution matters.

Achievements, rewards:

Member – Institute of Chartered Accounts in England and Wales, Prize-winner in exams; Member – Chartered Institute of Taxation.

Publications, scientific works:

Author of various articles in various journals in UK.

Dmitriy Kornev

Director of Tax Administration and Treasury Department, Mobile TeleSystems OJSC


Timothy McDonald

Vice President - Finance & Accounting, Global Tax, Procter & Gamble


Biography

Education, academic degree:

Bachelor’s degree from the University of Michigan (1982).

Law degree from Wayne State University Law School (1986).

Professional experience:

Procter & Gamble Company, Vice President-Finance & Accounting, Global Taxes (2003 to present).

Responsible for all matters pertaining to corporate income and transactional taxes (VAT, GST and Sales/Use Taxes) globally, including tax policy positions involving legislation, planning, compliance and audit defense. Supervising an approximate 250 person global tax function located in 34 countries. The tax function also has responsibility for technical support and audit defense role for various other taxes (including for example; customs valuation matters, excise, and property taxes).

Baxter International Inc., Vice President, Global Taxes (1999 to 2003).

Responsible for all matters pertaining to corporate income taxes globally, including tax policy positions involving legislation, planning, compliance and audit defense. Previous position at the company; Director of International Tax (1999-1998) and Tax Counsel (1996-1998), both positions primarily focused on M&A, Competent Authority and general tax planning activities.

Deloitte and Touche, Held positions as Senior Manager, and previously Manager in the

International Tax Group (1989 to 1996).

Also, was a member of the National Transfer Pricing Team during the last four years at Deloitte.

Held roles of increasing client service responsibility in the areas of general international tax

planning, transfer pricing consulting, M&A structuring (primarily with an international focus),

general compliance and SEC tax related reporting.

Coopers and Lybrand, Tax Staff and later Tax Supervisor (1986 to 1989).

General Motors Corporation, Tax intern legislative analysis (1985 to 1986).

Sergey Ovsyannikov

Associate Professor of the Department of State and Administrative Law, Saint-Petersburg State University


Peter Reinhardt

CIS Tax & Law Leader, E&Y


Biography

Education, academic degree:

Bachelor’s degree with honours from Yale University (USA) with specialization in Russian and East European Studies.

Professional experience:

Partner, CIS Tax & Law Leader at Ernst & Young Moscow office.

More than 20 years of experience providing services for multinational companies and enterprises of various industries in the CIS.

Extensive experience in working with the Government of the Russian Federation in the field of strategic reforms, including immigration law.

From October 1994 to June 2011, CIS head of Human Capital Department at Ernst & Young.

CIS head of the Charity Committee at Ernst & Young.

Professional Interests:

Individual income taxation in accordance with the legislation of the Russian Federation, the United States and international law; international movement of employees; social security and payroll taxation; immigration and labour law; structuring of employment; currency control and reward strategy for management and employees.

*This schedule may be subject to change