22 April, Minsk /BELTA correspondent/. Today, Decree No. 14 of 19 January 2016 "On Additional Measures to Prevent Illegal Minimisation of Tax Amounts" comes into force, establishing a mechanism for self-taxation by business entities of economic transactions with sham entities upon the order of financial investigation bodies (FIB). This was reported to a BELTA correspondent by the Committee of State Control, which initiated and developed this document.
22 April, Minsk /BELTA correspondent/. Today, Decree No. 14 of 19 January 2016 "On Additional Measures to Prevent Illegal Minimisation of Tax Amounts" comes into force, establishing a mechanism for self-taxation by business entities of economic transactions with sham entities upon the order of financial investigation bodies (FIB). This was reported to a BELTA correspondent by the Committee of State Control, which initiated and developed this document.
The basis for issuing the order is the conclusion of the Department of Financial Investigations concerning a sham entity, indicating that documents involving it are legally invalid. Such an entity will be recognised as a subject included in the register of sham entities and not actually participating in economic transactions. For these purposes, financial investigation bodies will collect evidence not for each individual economic transaction, but for the activities of the sham entity as a whole.
As an incentive measure, business entities that comply with the orders and voluntarily pay tax liabilities will be exempted from administrative liability. If they disagree with complying with the order, an inspection will be carried out, and if violations are detected, appropriate measures of liability will be applied in full.
In addition, to ensure the protection of the rights and legitimate interests of business entities, the opportunity is provided to appeal the conclusion drawn up concerning the sham entity, as well as the automatic cancellation of the order issued to its counterparty, if objections are raised regarding its content.
The implementation of innovations will create conditions for the inevitable fulfillment of tax obligations when interacting with sham structures, which will make the use of their services economically unprofitable, and therefore will lead to a lack of demand for them and subsequently to a significant reduction in their number, the State Control Committee summarized. -0-