Nortia Law Offices successfully represented its client in a tax dispute concerning the calculation of the property tax base

31 October 2013
Nortia Law Offices successfully represented its client, one of the largest asset management companies in Russia, in a dispute with the tax authorities. The threshold issue in the case was whether a taxpayer is required to use an appraisal made by an independent appraiser to comply with the requirements of special (not accounting) legislation (the mutual funds legislation in case of the dispute) to calculate the tax base for the property tax purposes. The payer’s consistent position in courts was that the appraisal must not have been used for calculation of the property tax base. Both the Arbitrazh (Commercial) Court of the City of Moscow and the Ninth Arbitrazh (Commercial) Appeal Court confirmed that the taxpayer’s understanding of the Tax Code provisions regarding the property tax base calculation was correct. On October 24, 2013 the Federal Arbitrazh (Commercial) Court for the Moscow District upheld the rulings of the Arbitrazh (Commercial) Court of the City of Moscow and the Ninth Arbitrazh (Commercial) Appeal Court. The taxpayer’s position was prepared and defended in courts by the litigation and tax teams led by Yaroslav Karnakov, corporate and finance partner.