— BFD Law Office · Financial Activity Security

Tax disputes & business defense

Additional assessments, field audits, business fragmentation, secondary and criminal liability. From the inspectorate's first demand to the Supreme Court of Russia — with a written assessment and a frank discussion of prospects at the outset.

Assess your dispute prospects Message the managing partner

First assessment — in writing, before any engagement.

100+

publications and presentations in tax law

25+

years of combined tax-law experience

15+

industries and business sectors in the firm's tax practice

10+

jurisdictions in the partner network — BRICS, CIS, Middle East, EU

Area 01

Tax disputes and audits

We reduce assessments and, where possible, close the dispute with the tax authority before trial; we carry the case through to cassation and, if needed, to the Supreme and Constitutional Courts.

Support during field and desk audits of the Federal Tax Service
Objections to the audit report, administrative appeals, representation in arbitrazh courts
Disputes under Article 54.1 of the Russian Tax Code and business-fragmentation cases
Criminal defense under Articles 198–199 of the Russian Criminal Code

Area 02

International taxation

CFC, BEPS, transfer pricing, double taxation, exchange of tax information, currency regulation.

CFC reporting, profit calculation, transition to the fixed-profit regime
Application of double tax treaties, the beneficial-owner test
Scholarly legal opinions in disputes with the tax authority
Structuring settlements under sanctions and shifting business purposes

Area 03

Structuring and risk analysis

Tax planning of transactions and risk assessment of existing structures.

Tax support for M&A and reorganization of holding structures
Tax Due Diligence for investment and acquisition targets
Tax review of contracts — we remove wording that gives the inspectorate grounds for assessments
Exit from fragmentation arrangements, voluntary disclosure

Metallurgy

Excise on liquid steel and the mineral-extraction tax on ore and coal are computed from export indices, not from cost. Disputes over the excise base and casting volume (the 1,000-tonne threshold), the price floor that zeroes out the excise, the KRENTA coefficient and payment deferrals (Government Decree No. 1683).

Do you disagree with the inspectorate on how the liquid-steel excise base or the volume of recorded semi-products is determined? Start with a review of your casting records and the price indicator you apply.

Machine-building

Separate accounting and pricing under the state defense order, SPIC tax guarantees, the enhanced R&D coefficient (Art. 262 of the Tax Code) and the investment tax deduction. Disputes over eligibility for incentives and the classification of development costs.

Is the inspectorate challenging your state-defense-order accounting or your R&D coefficient? Start by reconciling your accounting policy with the list of works under Art. 262 of the Tax Code.

Construction and development

Timing of recognition and calculation of savings on shareholders' funds — per contract or per project as a whole (a dispute that reached the Supreme Court), developer profit tax and VAT under escrow, taxation of serviced apartments, classification of sub-contractor chains.

Is the inspectorate assessing profit on escrow savings computed per individual shareholder? Accounting for the financial result across the project as a whole is arguable — start with an analysis of the savings calculation.

Trade and distribution

Inclusion of royalties and dividends in the customs value (Supreme Court practice), customs-value adjustments, currency control and parallel imports, VAT and agency arrangements on marketplaces.

Is customs adding royalties or dividends to the customs value and assessing extra duties? Start with an analysis of the licensing and dividend structure of your transactions.

IT and digital companies

Keeping the share of core revenue at or above 70% (cl. 1.15, Art. 284 of the Tax Code) and separate accounting, the risk of a retrospective full-year tax recalculation when dividends or non-core income arise, the VAT exemption available only for software in the Ministry of Digital Development register. Field audits of IT companies are possible again from 2025.

Could dividends or non-core revenue push your core share below 70% and trigger a full-year recalculation? Start with a review of your income mix and separate accounting.

Private capital and holdings

CFC notifications and profit calculation, the fixed-profit regime, determining tax residency, incentives for international holding companies in Special Administrative Regions (Russky and Oktyabrsky Islands), confirming sources of assets for banks.

Questions on CFCs, residency or relocating a holding to a Special Administrative Region? Start with a diagnostic of your ownership structure and CFC notifications.

About the firm

A project-driven approach to tax law

BFD Law Office is a bar association of the Sverdlovsk Region "Financial Activity Security". The team was formed through work at international consulting and law firms and in the legal profession. We combine the academic school of the Financial Law Chair at the Yakovlev Ural State Law University with a project-driven approach to every matter: before we begin, we analyse the matter and, together with the client, choose the shortest path to the objective.

Trust

We speak plainly, even when the outlook is uncomfortable. The client makes decisions knowing the real risks — not what is pleasant to hear.

Expertise

We understand the client's business no less than the letter of the law. A position is strong where the lawyer understands how the industry and the deal itself work.

Project-driven approach

Every matter has a goal from day one. We build strategy and tactics together with the client and their team and keep the focus on the result at every stage.

International presence

Where the client has assets and deals, we have partners. Our network across 10+ EU and BRICS jurisdictions has been built over years of joint practice.

— Partners

— Attorneys and assistants

— Monographs

Selected Works of the BRICS Institute of Law

Reclassification of income, expenses and transactions in the tax law of BRICS states

A comparative study of GAAR and SAAR, CFC and thin-capitalisation rules, drawing on Russia and Brazil.

I. A. RakovRead

Selected Works of the BRICS Institute of Law

Taxation of foreign entities operating through a service permanent establishment

The service-PE concept: qualifying features, distinguishing criteria and application practice across BRICS states.

E. A. ZakharovRead

— Textbooks & collective works

Yustitsinform · 2023 · ed. D. V. Vinnitskiy

Law of Public Finance: Doctrine, Legislation, Case-Law, Comparative Analysis. Volume I

Textbook of the Financial Law Chair, Yakovlev Ural State Law University. The firm’s partners co-authored the tax-law and international-tax chapters.

Team of authors · I. A. Rakov, E. A. ZakharovRead

Encyclopedia · financial-law scholarship

Encyclopedia of Russian Financial Law

A compendium of the core categories and institutions of financial law. The firm’s partners are among the contributing authors.

Team of authorsRead

IBFD · Amsterdam · 2019

Special Tax Zones in the Era of International Tax Coordination

An IBFD research-group study of special tax zones across 15 jurisdictions. I. A. Rackov co-authored Chapter 13 “Special Tax Zones in Selected Main Jurisdictions” (Russia) together with Prof. D. V. Vinnitskiy.

IBFD research group · I. A. RackovRead

When should I engage a Russian tax attorney?

The earlier the better. The optimal moment is upon receiving the first request or notification from the Russian Federal Tax Service (FTS). At this stage we can build a position and prevent escalation to a field audit. If an audit is already under way, we join at any stage: objections, administrative appeal, arbitrazh proceedings, the Supreme Court. In criminal cases under Articles 198–199 of the Russian Criminal Code, engaging defense counsel is mandatory from the first interrogation.

Can the firm work with clients remotely?

Yes. We support clients across Russia: documents are exchanged via secure channels; communication via video conference or messengers as chosen by the client.

What should I do if the FTS sends a request for explanations?

Do not ignore it and do not respond without analysis. The request is an evidence-gathering tool: response wording may be used against the company. We analyse the basis of the request, prepare a legally precise response and conduct an internal diagnostic.

Is the inspectorate obliged to notify the taxpayer of errors before issuing a decision?

Yes. Upon detection of errors, the inspectorate must notify the taxpayer and request explanations. If the decision is issued without fulfilling this obligation, this is grounds for cancellation. The argument about violation of Clause 3 Art. 88 of the Russian Tax Code must be raised in the administrative appeal to the regional FTS office.

What actions are prohibited during suspension of a field audit?

Prohibited: requesting documents from the taxpayer, any actions on its premises, and interrogation of its employees. The inspectorate must return original documents. Records of employee interrogations conducted during suspension are inadmissible evidence.

What is a CFC and is reporting required?

A Controlled Foreign Company is any foreign legal entity or unincorporated structure in which a Russian tax resident holds more than 25 percent (or 10 percent where aggregate Russian-resident ownership exceeds 50 percent). Participation must be reported to the FTS, annual statements filed and tax paid on undistributed profit — or the fixed-profit regime used. We determine whether a structure falls under the CFC rules, calculate profit and prepare reporting.

Yekaterinburg

+7 343 382-20-91

office@abfd.ru

Office

101 Mamina-Sibiryaka St., office 8.09

620075, Yekaterinburg

Managing partner · Telegram

Telegram @taxlaw_rus

Office hours

Mon–Fri · 09:00–19:00

Telegram replies within 1–2 hours during business hours

Tax disputes & business defense

Practice areas