The Supreme Arbitration Court of the Russian Federation (the “SAC”) recently ruled that the tax authorities are now required to attach all documents to a tax audit report to support a tax violation. This is contrary to the Requirements of Filing a Tax Audit Report (the “Requirements”), which stipulate that all documents received by the tax authorities during an audit are internal documents that are not to be presented to an audited company along with the tax audit report.

The SAC concluded that the Requirements contradict the Russian Tax Code, thereby declaring the Requirements invalid in the stated section of the ruling. Consequently, the tax authorities are now required to transfer all documents proving a tax violation to the audited company.

Some of these documents may include documents received from third-party sources rather than those received from inspected companies, such as from cross audits, witness testimony or from other expert sources.

[Supreme Arbitration Court of the Russian Federation Decision on case No. VAS-16558/10, dated 24 January 2011]