Natalia Kornienko, Head of the Tax System Development Department, the Gaidar Institute commented to the Govorit Moskva” Radio Station on the RF Tax Code amendments approved by the State Duma and signed by the President.
The Informatsionny Kanal (Information Channel) program was dedicated to the news published by the Kommersant daily. It was reported that the State Duma approved amendments to the Tax Code providing for charging hundreds of billions or trillion roubles worth of additional taxes from the Russian business.  

The list of real property facilities on which the tax is to be charged starting from 2020 on the basis of the cadastral value and not the residual one as it was currently practiced was expanded. The introduction of the clause: “other real property facilities” prompted questions in the business community.

According to Natalia Kornienko, at present there are problems with understanding what items are recognized as taxable ones.  “The norms set by the Civil Code do not completely suit the business. The amendments in question concern a large number of complex facilities whose qualification is complicated”, the representative of the Gaidar Institute said.

“The Ministry of Finance which is responsible for the fiscal policy was puzzled by the preliminary calculations presented by Alexander Shokhin, Chairman, on behalf of the Russian Union of Industrialists and Entrepreneurs”, Natalia Kornienko reports. As per those calculations, a technical correction leads to multiple growth in the tax burden because of a switch-over to the cadastral value. Natalia Kornienko has reminded that the moratorium on a tax burden rise is in effect in Russia.  

According to the Kommersant daily, the Ministry of Finance has recognized the problem and promised to correct the situation by introducing additional amendments to the law. Natalia Kornienko believes that one should not look for wrong intentions of the bill authors and the State Duma, it was just a technical error. “This autumn was abundant in various judicial reforms and important laws, so officials simply overlooked it”, the expert notes.