In a letter dated 20 September 2012, the Federal Tax Service of the Russian Federation (the “FTS”) clarified that fulfilment by a participant in a consolidated group of taxpayers (the “Group”) of the requirements on (i) the aggregate amount of taxes paid, (ii) the total sales turnover and other income, (iii) the aggregate asset value is tested only as of the date of registration of the agreement on creating a Group. Accordingly, there is no need to submit documents confirming compliance with these requirements the agreement on creating a Group is amended.

In a letter dated 19 September 2012, the FTS also commented on another requirement for participation in a Group, namely the fact that the value of a participant's net assets must exceed the value of its charter capital. The FTS specified that the net assets value is calculated as at the last reporting date preceding the date of submission to the tax inspectorate of the agreement on creating (or amending) a Group. It also stated in the letter that this viewpoint is agreed with the Ministry of Finance of the Russian Federation.

As the concept of consolidated group was fairly recently introduced in Russian tax law, there is little practice on the issues that may arise when implementing the requirements that apply to them.

[Letter of the Federal Tax Service of the Russian Federation No. ED-4-3/15673, dated 20 September 2012; Letter of the Federal Tax Service of the Russian Federation No. ED-4-3/15572@, dated 19 September 2012]