Gazprom Export to be first among Gazprom's subsidiaries to join tax monitoring regime
A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Mikhail Mishustin, Head of the Federal Taxation Service (FTS) of Russia, took place in Moscow today.
The parties discussed the Gazprom Group's transition to a new form of tax control – tax monitoring. It was noted that Gazprom Export would be the first among Gazprom's subsidiaries to join the new regime on January 1, 2019. The FTS of Russia's decision on conducting tax monitoring at the company was presented at the meeting.
FTS experts will be given remote access to Gazprom Export's data mart. This information system will contain, inter alia, the company's accounting and tax data, tax registers, templates of source documents, and information on the internal control system.
It was highlighted that Gazprom Export's transition to tax monitoring would mark a new stage in the interaction between Gazprom and the FTS of Russia. This form of cooperation will help, among other things, streamline tax administration practices, reduce audit costs, and bring tax disputes to a minimum.
Upon reviewing the initial results of operations under the tax monitoring regime, other companies of the Gazprom Group will consider a step-by-step adoption of this mechanism.
Tax monitoring is a form of tax control that allows a tax authority to monitor, in real time, the accuracy of tax calculations and the completeness and timeliness of payments (transfers) with regard to taxes, duties and insurance fees payable by taxpayers in compliance with the Tax Code of the Russian Federation.
Tax monitoring is a method of enhanced outreach whereby an organization gives a tax authority real-time access to accounting and tax data, gaining in return the right to, in case of doubt, request that the tax authority present a reasoned opinion on the tax consequences of the transactions being undertaken.
The introduction of a tax monitoring regime helps accelerate the resolution of tax legislation-related disputes, allows the taxpayer to avoid further accruals of taxes, penalties and fines, and alleviates the burden of tax control.
Tax monitoring procedures cover calendar years.