At the end of November 2012 the Federal Tax Service of the Russian Federation (the “FTS”) issued a letter commenting on the rendering of decisions based on the results of tax inspections in instances where a taxpayer submits a revised tax declaration.

The FTS has stated that the figures in a revised tax declaration will only be considered when rendering post tax audit decisions if the amendments have been reviewed and duly documented.

In relation to this the FTS noted that the tax authority’s suggestion that necessary changes be introduced to accounting and tax recording documents which are included in the concluding part of the post tax audit decision will not result in an obligation on the taxpayer to submit revised tax declarations since tax declarations do not belong to tax recording documents.

The letter of the FTS also included a reminder that the tax legislation does not limit the period for submission of a revised tax declaration by a taxpayer.

Nonetheless, the actions of the tax authority depend on when the revised tax declaration is submitted. Therefore, the FTS clarified how the tax authority should act in different situations depending on the timing of receipt of the revised tax declaration.

The FTS’s clarifications give the taxpayers a chance to assess from a practical standpoint the consequences of submitting a revised tax declaration, and to be aware in advance of the possible reaction of the tax authority depending on when the revised tax declaration is submitted.

[Letter No. AS-4-2/19576 of the Federal Tax Service of the Russian Federation "On Certain Aspects Related to Consideration of Revised Tax Declarations when Rendering Post Tax Audit Decisions", dated 21 November 2012]