From January 1, 2017, a response to a request for clarification on VAT will have to be submitted only electronically via telecommunication channels (TCS). A response to a request sent to the inspectorate in paper form is considered not submitted. This is directly provided for in Article 88 of Federal Law No. 130-FZ dated 05/01/2016. For failure to provide (or untimely submission) explanations, a fine of 5,000 rubles is provided.
As part of a desk tax audit of VAT returns, the inspectorate may send payers a request to clarify any information reflected in the declaration.
From January 1, 2016, taxpayers who submit declarations electronically were required to ensure the acceptance of tax authorities’ demands (Clause 5.1, Article 23 of the Tax Code of the Russian Federation). If this is not done, the suspension of transactions on bank accounts cannot be ruled out (clause 3, clause 1.1 of Article 76 of the Tax Code of the Russian Federation). From January 1, 2017, responses to requirements must be sent electronically.
What requirements are relevant now?
There are three types of requirements for the provision of explanations for VAT, the format of which is formalized by the Federal Tax Service (that is, an electronic document format has been developed and normatively established):- according to control ratios;
- on discrepancies with counterparties;
- about information not included in the sales book ().
After receiving a claim, the payer has six business days to send a receipt for the claim, then another five business days to respond to the claim (weekends and public holidays are not included).
Let's take a closer look at what should be done if a request is received.
Explanation of reference ratios
If the tax authority calculates the control ratios in the declaration and finds inaccuracies.How quickly it will come. Within 1-2 days after sending. Theoretically, the request can be received during all three months of the audit, but in practice the tax authorities cope with the task within a day or two after sending the declarations.
In what format will it come? As a pdf file.
What information does it contain? The request for clarification on control relationships will include the following information:
- Reference ratio number (for example, 1.27).
- Formulation of the violation (for example, “inflating the amount of VAT subject to deduction”).
- Reference to the norm of legislation (Tax Code of the Russian Federation, Art. 171, 172).
- Control ratio (Art. 190 R.3 + sum of Lines 030 and 040 R.4 + Art. 080 and 090 R.5 + Art. 060 R.6 + Art. 090 R.6 + Art. 150 R.6 = Article 190 R. 8 + [Art. 190 App. 1 to R. 8 - Art. 005 App. 1 to R. 8] if the left side of the equality > right).
- Data reflected in the declaration (1781114.00<=3562595.75).
Explanations for discrepancies with counterparties
In what case will the demand come? Data on invoices of buyers and sellers are automatically reconciled in the information system of the tax office. For this purpose, it contains special algorithms. If during the reconciliation the counterparty is not found or discrepancies are discovered in the data (for example, in VAT), the Federal Tax Service will send the company a request to provide explanations for the discrepancies.How quickly it will come. As a rule, within 2 weeks after sending the declaration.
In what format will it come? In pdf + xml format.
What information does it contain? The request for explanations of discrepancies includes a list of invoices for which discrepancies requiring clarification were found, as well as error codes. The error codes found may be as follows:
- 1—the counterparty does not have a record of the transaction;
- 2 - discrepancy between transaction data between the purchase book and the sales book. In particular, between the data in section 8 (information from the purchase book) or appendix 1 to section 8 (information from additional sheets of the purchase book) and section 9 (information from the sales book) or appendix 1 to section 9 (information from additional sheets of the sales book) taxpayer declarations;
- 3 - discrepancy between transaction data between section 10 (information from the journal of issued invoices) and section 11 (information from the journal of received invoices) of the taxpayer’s declaration;
- 4 (a, b) - an error in columns a, b is possible (the number of the columns in which errors were made is indicated)
What to include in an email response. To avoid problems later, it is wise to provide an explanation for each invoice specified in the request. And in order to figure out what kind of explanation to give, you need to bring up the original invoices mentioned in the requirement. And check the data - further actions depend on the results of the check:
- the data turned out to be correct. Confirm that the data is correct; it would not hurt to attach a scan of the invoice or the original in electronic format (xml). Do not forget to include the attached documents in the inventory;
- An error was detected in the invoice details (date, number, tax identification number, checkpoint or others). Make an amendment in the response to the request (except for the VAT amount);
- error in the tax amount. You will have to submit an updated declaration within the allotted five-day period after sending the receipt.
Explanation of information not included in the sales book
There is no officially approved procedure for responding to demands of this kind. Here we provide expert advice.In what case will the demand come? A request to clarify information not included in the sales book will be sent to the taxpayer in the event that the buyer reflects transactions with the seller in the declaration, but the seller does not do this in his sales book.
How quickly it will come. Theoretically, such demands can be received within the same three months of verification, but it is more likely that the demand will arrive within two weeks from the date of sending the declaration.
In what format will it come? In pdf file format.
What information does it contain? This requirement includes the name, INN and KPP of the buyer who reflected the transaction data, as well as the numbers and dates of invoices.
What to include in an email response. The data must fall into different answer tables is not a requirement depending on the conditions given below.
- The transaction is confirmed, that is, there is an invoice in the declaration, but with data different from the buyer’s data. The invoice then goes into a table that explains the discrepancies. In the table, it is enough to indicate the number, date and TIN of the counterparty; additional information is not necessary.
- The transaction is not confirmed, that is, the seller did not issue this invoice to the buyer. The invoice is included in a table containing data on unconfirmed transactions. The table should reflect the following information:
- invoice number
- invoice date
- Buyer's TIN.
- The payer has the invoice mentioned in the request, but he forgot to reflect it in the sales book. In this case, we advise you to include the invoice in an additional sheet of the sales book and send an updated declaration. Five working days are given for this after sending the receipt of acceptance of the request.
Request for clarification on other grounds
In what case will the demand come? The reasons can be any. In this case, the declaration data must be explained in any form, but in electronic form.In what format will it come? As a pdf file.
What to include in an email response. So, from January 1, 2017, the electronic format of explanations becomes mandatory. However, the corresponding document has not yet been finally approved (see below). The likelihood of document approval is very high. Thus, the answer can contain essentially any explanation, one or several at once. In other words, these can be explanations of discrepancies, control ratios, transactions not included in the sales book, as well as all other explanations in any form.
If nothing changes, then the format of the response in electronic form currently implies only an explanation of the discrepancies.
Getting ready for a new format of explanations
A draft order of the Federal Tax Service on a new format for submitting explanations to the VAT return in electronic form has been submitted for public discussion (http://regulation.gov.ru/projects#npa=53377). The document has successfully passed the stage of the so-called regulatory impact assessment. The new format provides:- Possibility of including explanations of control ratios in the response.
- Possibility of including in the response explanations for transactions not included in the sales book.
- Possibility of including any other explanations in any form in the answer.
Submission of documents at the request of the tax inspectorate occurs according to certain rules of the Tax Code of the Russian Federation, and in modern conditions there are several ways to do this. We'll talk about this in our material.
Document submission methods
If various documents were required during the desk audit, they can be provided to the tax office in the following ways (subclause 1, clause 2, article 93 of the Tax Code of the Russian Federation):
- paper certified photocopies are transferred personally by the taxpayer or through a representative to the tax office or by registered mail by mail (subclause 2, clause 2, article 93 of the Tax Code of the Russian Federation);
- in electronic form in a special format and in accordance with the procedure approved by Order of the Federal Tax Service of Russia dated February 17, 2011 No. ММВ-7-2/168@;
- in electronic form through the taxpayer’s personal account;
- in the form of scanned images via TKS or through the taxpayer’s personal account.
The taxpayer himself has the right to choose which method to transfer documents to him at the requests and requirements of tax authorities (letter of the Federal Tax Service of Russia dated November 25, 2014 No. ED-4-2/24315).
NOTE! Taxpayers who are required to submit reports only electronically do not have the right to send notifications about the impossibility of submitting the documents requested by the Federal Tax Service by mail.
Find out what opportunities electronic personal accounts provide from the following materials:
- “The procedure for filling out the 3-NDFL declaration in your personal account” ;
- “Platon system - user’s personal account (nuances)” .
Submission of documents in electronic form
Find out how to get an electronic signature from publications .
Thanks to this opportunity you:
- avoid technical errors by using electronic formats;
- save your resources (no need to print documents and come to the inspection or post office to transfer (send) them);
- You are guaranteed to receive confirmation of document delivery.
To prepare and submit documents you have:
- 5 working days if the tax authorities are waiting for documents (information) from you about a specific transaction or counterparty in respect of which an audit is being carried out;
- 10 working days if documents are requested as part of a desk or on-site inspection of your company.
The deadlines are counted from the date of receipt of the request for the submission of documents.
Scanned images of paper documents: what to look for when presenting them
When submitting scanned images of documents drawn up on paper to tax authorities, be guided by:
- per paragraph 4 p. 2 tbsp. 93 of the Tax Code of the Russian Federation, which allows you to submit paper documents in electronic form in the form of electronic images of documents (documents drawn up on paper, converted into electronic form by scanning while preserving their details);
- Order of the Federal Tax Service of Russia dated January 18, 2017 No. ММВ-7-6/16@, which approved the universal inventory format for transmitting scanned copies of documents to the tax office, allowing scans of any papers to be sent to tax authorities;
- Federal Tax Service letter No. ED-4-2/1984@ dated 02/09/2016, which notes the possibility of submitting any documents to the Federal Tax Service in electronic form using any software, if they are compiled in accordance with the formats established by the Federal Tax Service.
When deciding on the form in which to submit the requested documents to the tax authorities, do not forget that the tax authorities accept certain documents exclusively in electronic form. Find out more about this at link .
How to sign photocopies of documents
If documents are submitted in paper form, then a number of rules should be followed.
Photocopies of documents must be certified by the manager or other authorized person. You can also seal them if the organization has one. But this is optional. Tax authorities allow not to certify the submitted copies with a seal, even if the company or individual entrepreneur has not abandoned the seal in its activities (letter of the Federal Tax Service of Russia dated 08/05/2015 No. BS-4-17/13706@).
The authorized person acts on the basis of a power of attorney issued by the manager. The power of attorney must be drawn up in accordance with the requirements of the law (Articles 185-189 of the Civil Code of the Russian Federation and subparagraph 1, paragraph 3, Article 29 of the Tax Code of the Russian Federation).
The signature on the photocopies is affixed in accordance with the registration procedure defined in clause 3.26 of GOST R 6.30-2003 (Resolution of the State Standard of Russia dated 03.03.2003 No. 65-st). This standard specifies the order in which the labels should appear. It looks like this:
Position of the certifier Personal signature Initials, surname
It is necessary to take into account that the established procedure is advisory in nature, therefore it is considered optional (subclause 4, clause 1 of GOST R 6.30-2003). Thus, inscriptions can be located anywhere in the document.
For example:
Copy is right.
General Director of Orion LLC ----------- Smirnov A.P.
There is no need to notarize copies of documents (Clause 2, Article 93 of the Tax Code of the Russian Federation). But a situation may arise when you cannot do without a notary. Find out about this in the next section.
Does an individual entrepreneur need to have a power of attorney certified by a notary?
If the entrepreneur’s documents for submission to the tax office are certified by an authorized person, then a power of attorney certified by a notary is required (subclause 4, clause 2, article 11, subclause 2, clause 3, article 29 of the Tax Code of the Russian Federation).
The following people share the same opinion:
- judicial authorities (see decision of the Plenum of the Supreme Arbitration Court of the Russian Federation dated July 30, 2013 No. 57).
- officials of the Ministry of Finance (letters dated 03/24/2014 No. 03-02-08/12763, dated 08/01/2013 No. 03-02-08/30900, dated 11/15/2012 No. 03-02-08/99, dated 08/07/2009 No. 03- 02-08/66);
- tax authorities (letters of the Federal Tax Service of Russia dated August 22, 2014 No. SA-4-7/16692, dated October 16, 2013 No. ED-4-3/18527@).
How to make copies of documents
If the legislation does not provide for a copy of documents certified by a notary, then tax inspectors do not have the right to demand certified copies (subparagraph 2, paragraph 2, article 93 of the Tax Code of the Russian Federation, additionally letter of the Ministry of Finance of Russia dated December 7, 2009 No. 03-04-05-01/886 ).
Therefore, tax inspectors are provided with copies of documents certified by the manager.
A multi-page copy of the document must be bound and a single certification inscription must be placed on the firmware. The sheets are numbered and the total quantity is indicated on the certification inscription. It is necessary to stitch the sheets in such a way that subsequently there is no embroidering of the bundle, and there is free access for photocopying any sheet. All dates and signatures must be clearly visible on the copy of the document (letter of the Ministry of Finance of Russia dated 08/07/2014 No. 03-02-RZ/39142, Federal Tax Service of Russia dated 09/13/2012 No. AS-4-2/15309@ (clause 21)).
If there are several documents, then the copies are certified separately and a certification inscription is placed on each one. The financial department reports this in its letters dated May 11, 2012 No. 03-02-07/1-122, dated October 24, 2011 No. 03-02-07/1-374, dated November 30, 2010 No. 03-02-07/1 -549<1>, as well as the tax department in a letter dated October 2, 2012 No. AS-4-2/16459. The judicial authorities adhere to the same position (resolution of the Federal Antimonopoly Service of the Moscow District dated November 5, 2009 No. KA-A41/11390-09).
<1>These letters refer to counter checks. Since the conditions for submitting documents at the request of the tax authorities are the same, they can also be applied to desk audits (clause 2 of Article 93, subclause 3 of clause 5 of Article 93.1 of the Tax Code of the Russian Federation).
You should not use used sheets to copy documents. On the reverse side there is information about the executor of the document - last name, initials and telephone number (letter dated 02/01/2010 No. 03-02-07/1-35).
Demanding a scanned version of a document is illegal
The actions of tax inspectors are considered unlawful if, in addition to a certified copy of documents, a scanned version of the document on disk or in electronic form is requested.
Tax legislation does not provide for the presentation of a scanned version of a document on disk or in electronic form if a paper copy was previously provided (Article 93 of the Tax Code of the Russian Federation).
What fines a company can expect if it does not submit documents for a counter-inspection, see the article “What is the penalty for failure to provide documents for a counter-inspection?” .
Find out how long it takes to prepare and submit documents to the tax authorities. .
Results
If the tax authorities have asked you for documents, you can submit them on paper or electronically. Paper copies must be certified by the signature of the manager and sewn in a certain way, and can be brought to the tax office in person (or through a representative) or sent by registered mail.
In relations with the inspectorate, the accountant often has to provide the tax authorities with copies of certain documents. Before submitting to the inspection, copies must be certified, which is expressly provided for by the Tax Code. However, the certification procedure is not described in the Code, which often causes conflict situations. However, such rules are still established by law. In this article we have collected situations that most often cause controversy. The result was a selection in the format of questions and answers, or, as they say on the Internet, in the format FAQ - Frequently asked questions.
Q. What rule obliges the taxpayer to submit certified copies to the inspectorate?
A. This is stated in paragraph 2 of Art. Tax Code of the Russian Federation. According to this rule, if a taxpayer submits the requested documents on paper to the inspectorate, then he is obliged to submit copies certified by the person being inspected.
Q. Does this mean that copies must be notarized?
A. No, inspectors may require copies to be notarized only if expressly required by law. This rule is also fixed in paragraph 2 of Art. Tax Code of the Russian Federation. Accordingly, when presenting a requirement for notarization of a copy of a document, inspectors must justify it by reference to the rule of law introducing such an obligation. In all other cases, the requirement to notarize documents is illegal.
Q. Is there a document that sets out the requirements for certified copies?
A. Yes, the general procedure for preparing copies of documents is established by clause 5.26 of the State Standard of the Russian Federation GOST R 7.0.97-2016 (approved by order of Rosstandart dated 12/08/16 No. 2004-st). With regard to copies of documents submitted to the tax authorities, you must be guided by the order of the Federal Tax Service of Russia dated November 7, 2018 No. ММВ-7-2/628@.
Q. What inscriptions need to be made on a copy of a document when it is certified?
A. According to GOST, o a mark indicating the certification of the copy is placed under the “signature” attribute. The certification mark includes the word “True”, the title of the position of the person who certified the copy, his handwritten signature and its transcript (initials, surname) and the date of certification. The certification mark can be made using a stamp.
In addition, you need to make one more inscription on the copy - about the storage location of the document from which the copy was made. This inscription should be certified with the seal of the organization. For example, “The original document is located in Altair LLC in file No. 23/19 for 2019.”
Q. Is the organization's seal required on a certified copy of a document?
A. If the company does not have a seal, then the tax authorities do not have the right to demand that its stamp be on the copies. This is stated in a letter from the Russian Ministry of Finance.
Q. How to certify multi-page documents?
A. When certifying copies of multi-page documents, options are possible. Firstly, you can certify each page separately according to the general rules (stamp, position, signature, transcript, date, record of the document’s storage location).
Secondly, you can organize the firmware of a multi-page document, that is, stitch copies of all sheets into one document and certify it as a whole. This is done by putting a certification inscription on a paper sticker placed on the back of the last sheet at the place where the sheets are fastened with thread. The certification inscription must contain the position of the person who certified the authenticity of the documents (or an indication that the inscription was made by an individual entrepreneur), his personal signature, full name, indication of the number of sheets (in Arabic numerals and in words), the date of signing (Order of the Federal Tax Service of Russia dated 07.11.18 No. ММВ-7-2/628@).
Q. Are there any special requirements for firmware documents?
A. Yes, they are set out in order of the Federal Tax Service of Russia dated 07.11.18 No. ММВ-7-2/628@. According to this document, when creating stitched documents (copies) on paper, the following rules must be observed. All sheets must be divided into volumes (parts). In this case, the volume of each volume should not exceed 150 sheets. Each volume is stitched separately. Numbering is done in Arabic numerals in a continuous manner, starting from one. The volume limitation requirement does not apply to multi-page documents over 150 sheets - they are formed in one volume. At the same time, the firmware should not interfere with the free reading of the text, all details, dates, visas, resolutions, other inscriptions, stamps, seals and marks, as well as copying each individual sheet of the firmware.
All sheets must be stitched with a strong thread, the ends of which are brought to the back of the last sheet and tied. On the reverse side of the last sheet, at the place of fastening, you need to stick a paper sticker and put a certification inscription on it.
Q. Is an inventory of the documents being submitted necessary?
A. Yes, according to order of the Federal Tax Service of Russia dated 07.11.18 No. ММВ-7-2/628@, a list of the submitted documents is attached to the covering letter or is an integral part of it.
Q. Is a cover letter required?
A. Yes, the order of the Federal Tax Service of Russia dated November 7, 2018 No. ММВ-7-2/628@ states that The documents must be submitted to the tax office with a covering letter indicating the basis for their submission (details of the request for the submission of documents (information) - date and number of the request) and the total number of sheets of documents.
A sample of such a document is given below.
Cover letter sample
On the letterhead of the organization "LLC Rassvet"
To the Inspectorate of the Federal Tax Service of Russia No. 1 for the city of Ryazan
03/07/2019 No. 28/nOn No. 1258/7 dated 03/04/2019
Based on the Requirement for the submission of documents and information dated March 4, 2019 No. 1258/7, we are sending the following documents to your address:
1. A copy of the agreement between Rassvet LLC and Blagovest LLC dated May 22, 2018 without a number on 1 page. in 1 copy.
2. A copy of the work acceptance certificates under the agreement between Rassvet LLC and Blagovest LLC dated May 22, 2018 without a number for the period May-September 2018 on 8 pages. in 1 copy.
3. Copy of the payment order dated 08/08/2018 on 1 page. in 1 copy.The total number of sheets is 10 (ten).
Head Nagiev V.P. Nagiyev
(hereinafter referred to as the Code) a three-month period has been established for sending a demand for payment of taxes, fees, insurance premiums, penalties, fines, interest (hereinafter referred to as the demand for payment) from the date of discovery of the arrears. If the amount of arrears and debt on penalties and fines related to this arrears is less than 500 rubles, the demand for payment must be sent to the taxpayer no later than one year from the date of discovery of the arrears.
The payment request sent to the taxpayer based on the results of the tax audit is sent no later than 20 days after the expiration of one month from the date of delivery of the relevant decision (clause 9 of Article 101 of the Code).
The requirement to pay insurance premiums on the basis of a decision received from the Social Insurance Fund of the Russian Federation that has entered into force on non-acceptance of expenses for the payment of insurance coverage, adopted as a result of checking the validity of the declared expenses for the payment of insurance coverage for compulsory social insurance in case of temporary disability and in connection with with maternity, carried out by the Social Insurance Fund of the Russian Federation, must be sent by the tax authority to the payer of insurance contributions within 10 days from the date the tax authority receives the relevant decision (clause 2.1 of Article 70 of the Code).
The rules established by the above article also apply to the deadlines for sending demands for payment provided for in Chapter 9 of the Code.
The payment request sent to the taxpayer in accordance with Article 204 of the Code, as well as based on the results of the tax audit, is formed separately.
Requests for payment sent to the responsible participant of the Group of Companies in accordance with paragraphs 1 and 2 of Article 70 of the Code are formed separately.
The payment request is filled out in duplicate according to the form approved by Order of the Federal Tax Service of Russia dated February 13, 2017 No. ММВ-7-8/179@.
One copy of the request for payment is handed over to the taxpayer personally against a receipt, sent by registered mail, transmitted electronically via telecommunication channels in accordance with the Procedure for sending to the taxpayer a request for payment of taxes, fees, insurance premiums, penalties, fines, interest in electronic form via telecommunication channels approved by order of the Federal Tax Service of Russia dated February 27, 2017 N ММВ-7-8/200@ (registered by the Ministry of Justice of Russia on May 15, 2017 No. 46729) or through the taxpayer’s personal account in accordance with the Procedure for maintaining a taxpayer’s personal account, approved by order of the Federal Tax Service of Russia dated 08/22/2017 No. ММВ-7-17/617@ (Registered by the Ministry of Justice of Russia on 12/15/2017 No. 49257). If the specified request for payment is sent by registered mail, it is considered received after six days from the date of sending the registered letter (clause 6 of Article 69 of the Code).
The second copy of the request for payment with the date and signature of the taxpayer on delivery or with a document confirming the date of sending the request for payment by registered mail is kept by the tax authority.
The deadline for fulfilling the requirement to pay tax sent to the taxpayer, in accordance with paragraph 4 of Article 69 of the Code, must be 8 working days from the date it is received by the taxpayer, unless a longer period of time for paying the tax is specified in this payment request.
In the payment request sent to the taxpayer in accordance with paragraph 13 of Article 204 of the Code, it is recommended to set a payment period of no more than five days from the date of its receipt by the taxpayer.
If the taxpayer receives the right to restructure debt on taxes, fees, insurance premiums and accrued penalties and fines, granting a deferment, installment plan, or concluding an agreement on an investment tax credit before a decision is made to collect the tax, fee, insurance premiums, penalties, fines, interest, a previously sent demand for tax payment is withdrawn no later than three working days from the date of granting the right to restructuring, deferment (installment plan), concluding an investment tax credit agreement, or after the tax authority receives information about granting the right to restructuring, granting a deferment (installment plan) and concluding an investment tax credit agreement.
In the event of a change in the taxpayer's obligation to pay taxes, fees or tax insurance contributions, the tax authority sends the taxpayer an updated request for payment in accordance with the procedure
In the event of claims from the tax inspectorate, it is often necessary to draw up a written response (using a sample) to its requirements with the provision of appropriate explanations. How to correctly compose such an answer in different cases, ready-made examples and step-by-step instructions are in this article.
When to Provide Explanations
First of all, it is important to understand that providing explanations is not always the employer’s responsibility. If the tax office has identified inconsistencies or errors, the organization must provide explanations only if they were found during a desk audit. The most common violations are:
- incorrect information in tax returns;
- inconsistencies in the data provided in one or more reporting documents;
- violations in transactions related to obtaining tax benefits (holidays, reduced rates);
- contradictions between the information provided by the taxpayer and the data available to the tax office.
Thus, a response to the tax authorities’ request to provide appropriate explanations (using the sample) is mandatory if a desk audit was carried out, which revealed violations. And in all other cases, providing written explanations is the right of the company. However, as experience shows, it is better to take care and send a letter to the inspection, since this often helps in conveying your position to the inspectors.
Practice shows that in most cases, explanations must be provided in connection with discrepancies regarding VAT and income tax.
Procedure for compilation
In general, the procedure goes as follows:
- After a desk audit has been carried out, the tax office sends a request in the form of a paper letter or email. The text indicates data that, in the opinion of the inspectorate, was compiled incorrectly, as well as discrepancies in the information contained in different documents.
- Then the taxpayer is obliged to provide his explanations as soon as possible - up to 5 working days. This period begins on the working day following the day of receipt of the notification.
- You can send it either by mail (registered mail), by courier, or electronically. Moreover, in the case of an email, it is important to verify it using an electronic digital signature. If it has not been created, the only option left is to send it in regular paper form. It is also important to know that it is often necessary to provide documents with explanations along with the application itself. Then the text of the letter must indicate the attachments: the name of the document, quantity and type (original or copy) are written down.
NOTE. The legislation does not deprive the taxpayer of the right to provide his explanations orally. However, in order to be on the safe side (in case of possible litigation), it is better to put everything in writing, a copy of which must be kept with you (it is also better to print out and duplicate the electronic version).
How to compose: sample requirements
There is no approved form, so each company has the right to choose its own option. It is best to print it on a branded bank. And you can draw up a document according to the general rules:
- The abbreviated name of the tax inspectorate is written in the “header” in the upper right corner (for example, “to the Interdistrict Inspectorate of the Federal Tax Service No. 19 for the Chelyabinsk Region”).
- Under the information about the addressee, all data about the sender is written down: the letter is sent from a specific official (usually the director of a company or the head of a branch), therefore his full name, position and abbreviated name of the organization (for example, Khlebodar LLC), as well as the address, are indicated and contact details.
- Under the “header” on the left side you can make a note indicating under what number and date the letter was registered in the organization’s outgoing correspondence journal.
- Next in the center is the title of the letter, which reflects its essence, for example, “Response to the request of the tax inspectorate” (and in brackets it is explained for what reason).
- In the text of the letter itself, the circumstances are first very briefly stated - i.e. a mention that a letter has been received from the tax office demanding an explanation, in response to which the company sends its letter.
- What follows is the actual explanation with a detailed but most concise description of your position. As a rule, 1-2 printed sheets are enough.
- If any documents are attached to the letter, they are also listed in the “Attachments” section.
- Finally, the sender indicates the position, once again writes down the name of the company, puts a signature and its transcript.
- Bottom line, left corner – date of document preparation. It must be indicated in order to have additional proof that it was provided on time.
A finished example is presented below.
Types: ready-made examples for common situations
In practice, there are several common cases when tax authorities present a requirement to provide a response (based on a company model) explaining their position on a particular topic. Ready-made solutions are discussed below.
If the fixed asset was sold at a loss
The inspectorate acquired the right to demand explanations from the company on this matter relatively recently – since 2014, which is quite legal. However, in practice, there are often cases where representatives of inspection bodies essentially abuse their rights and ask for clarification regarding such cases:
- the asset was sold, but losses were incurred only due to actual depreciation (depreciation), which is why it was necessary to sell the asset at a lower price;
- the asset was sold at a price higher than its residual value - such cases often arise for purely market reasons due to an unstable economic situation.
In these cases, the company is not required to provide any explanation. However, in the response letter it can be stated that profit was declared in the reporting documents, and the organization did not provide any factual errors or deliberately false information.
Application of benefits when paying property taxes
Since in 2015 taxes are not paid on all movable property assets (except for those belonging to depreciation groups 1 and 2) (provided that the company purchased them after January 1, 2013), the law essentially approved the benefit. Such preferential property is already designated in the Tax Code (Article 381).
However, many representatives of the inspection (perhaps out of ignorance) began to demand documents that confirm the possibility of receiving this benefit, as well as a complete list of all movable objects that are exempt.
It is important to keep 2 points in mind here:
- The letter must contain a specific list of the assets in question. Otherwise, you can only send copies of contracts and other documents that confirm the fact of purchase and the date of its completion. The contracts also reflect the type of selling company: dependent or independent, which has its own meaning.
- If assets were purchased from an affiliated company (as well as in cases where the assets were acquired as a result of a company reorganization), then taxes on such property are paid.
NOTE. The inspectorate may request a specific list of assets, i.e. preferential property, and it will be in the interests of the company to provide such data. Then the situation can be clarified especially quickly.
And here is what a sample response to such requirements looks like when it comes to providing explanations on preferential property.
Of course, all property objects of their 1st and 2nd depreciation groups are not included in this list. There are no benefits for them, and besides, representatives of the tax service do not have the right to demand clarification specifically on these things.
If property taxes are greatly reduced or increased greatly
Representatives of the tax inspectorate often become interested in cases where in one financial year the actually paid property tax decreased, and in the next it remained at approximately the same level (i.e. did not increase). The attention of inspectors is especially often drawn to situations where the differences between these values are too large (in their opinion), since this may indicate an illegal financial scheme aimed at non-payment.
In addition, 3-4 years ago there were precedents when interdependent organizations deliberately simply transferred some of the movable property assets into each other’s ownership in order to significantly reduce the payment amount. Since in 2015 the tax is paid from such a base, and the company’s tax has not actually increased, it means, logically, that it is deliberately evading payment.
The answer is provided according to the actual situation. The most often influenced by objective factors:
- liquidation of certain property assets due to optimization and/or unfavorable economic situation;
- sale of property;
- disposal of fixed assets.
The company then simply acquires property from a firm with which it is not interdependent. It is this reason that plays the main role. To prove their position, they send purchase and sale agreements and financial documents confirming such a legal scheme.
Relationship between depreciation and property tax
In such cases, suspicion arises because property is depreciated, but property taxes are not paid. Inspectors may again suspect some illegal activity. However, in practice, the reason is most often easily explained and provable. The fact is that a fairly large share of the company’s assets is property that belongs to depreciation groups 1 and 2, and no tax is paid on it. An example response for this case is provided below.
If the costs are too high
Tax authorities often demand explanations due to the fact that expenses, in their opinion, are growing too quickly and make up a fairly large percentage of the company’s budget. Practice shows that suspicion is raised in cases where the profit is only a fifth or less. It is very simple to explain the increase in costs, especially against the backdrop of real economic reasons:
- instability in the foreign exchange market (exchange rate differences);
- the need to increase wages due to the actually decreased incomes of the population over the past 3 years in a row;
- rising costs due to inflation.
What happens if you don’t respond to a request?
Responding to a tax request is the company’s responsibility, since if you completely ignore the message, the inspectorate has the right to fine the organization for:
- 5,000 rubles if it was not provided for the first time;
- 20,000 rubles – for the second time (calculation is carried out by calendar years).
Thus, providing an explanation in most cases is not particularly difficult. And ignoring the letter is not in the interests of the company: the point is not only in a possible fine, but also in the fact that by explaining its position, the company often saves itself from the need to conduct further proceedings, including litigation.
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