4 myths about counterparty verification
Posted: Wed Jan 22, 2025 9:45 am
There are no risks if you work on a post-payment basis
It is recommended to check the counterparty's integrity, since cooperation in this format is not yet a guarantee of fulfilling tax obligations. FTS inspectors may recognize that the company resembles a technical one, since it is registered at a mass address, pays minimal amounts to the budget and is unable to fulfill the terms of the agreement. This means that the transaction is fictitious and concluded in order to reduce deductions to the budget.
If this fact is proven, participants will face a fine of 40% of the unpaid amount of taxes in accordance with paragraph 2 of Article 110, paragraph 3 of Article 122 of the Tax Code of the Russian Federation, or criminal liability under Article 199 of the Criminal Code of the Russian Federation.
The risks are minimal the advantages of line database if transactions are made for small amounts.
If you work with a company on a regular basis and receive or provide services for small amounts, you may still have claims from tax authorities. The degree of diligence depends on the situation, as stated in the definition of the Supreme Court of the Russian Federation dated May 14, 2020 No. 307-ES19-27597, as well as in paragraphs 13, 16 of the letter of the Federal Tax Service of the Russian Federation dated March 10, 2021 No. BV-4-7/3060@.
When thinking about how to check a counterparty, it is worth assessing the contract amount, specificity and terms of the deal. There is no point in studying a company in detail in order to sell it a few dozen light bulbs for the office, but when working with expensive assets, you need to be extremely careful.
Myths about counterparty verification
It is now more convenient for a verified supplier to conclude a contract on behalf of an individual entrepreneur or other legal entity
Previously, you worked with one LLC, but this time they want to conduct the transaction through another company. Then it turns out that only three months have passed since the registration of this enterprise. The counterparty explains this fact by reorganization and may well be telling the truth. However, you need to make sure that the partner is not going to extract an unjustified tax benefit from a small transaction.
The risks are minimal when working with a well-known brand with a promoted website.
It will not be possible to present the reputation of the trademark and a popular portal on the Internet in case of claims from the tax authorities. And they may arise if the partner violates obligations to the budget.
It is recommended to check the counterparty's integrity, since cooperation in this format is not yet a guarantee of fulfilling tax obligations. FTS inspectors may recognize that the company resembles a technical one, since it is registered at a mass address, pays minimal amounts to the budget and is unable to fulfill the terms of the agreement. This means that the transaction is fictitious and concluded in order to reduce deductions to the budget.
If this fact is proven, participants will face a fine of 40% of the unpaid amount of taxes in accordance with paragraph 2 of Article 110, paragraph 3 of Article 122 of the Tax Code of the Russian Federation, or criminal liability under Article 199 of the Criminal Code of the Russian Federation.
The risks are minimal the advantages of line database if transactions are made for small amounts.
If you work with a company on a regular basis and receive or provide services for small amounts, you may still have claims from tax authorities. The degree of diligence depends on the situation, as stated in the definition of the Supreme Court of the Russian Federation dated May 14, 2020 No. 307-ES19-27597, as well as in paragraphs 13, 16 of the letter of the Federal Tax Service of the Russian Federation dated March 10, 2021 No. BV-4-7/3060@.
When thinking about how to check a counterparty, it is worth assessing the contract amount, specificity and terms of the deal. There is no point in studying a company in detail in order to sell it a few dozen light bulbs for the office, but when working with expensive assets, you need to be extremely careful.
Myths about counterparty verification
It is now more convenient for a verified supplier to conclude a contract on behalf of an individual entrepreneur or other legal entity
Previously, you worked with one LLC, but this time they want to conduct the transaction through another company. Then it turns out that only three months have passed since the registration of this enterprise. The counterparty explains this fact by reorganization and may well be telling the truth. However, you need to make sure that the partner is not going to extract an unjustified tax benefit from a small transaction.
The risks are minimal when working with a well-known brand with a promoted website.
It will not be possible to present the reputation of the trademark and a popular portal on the Internet in case of claims from the tax authorities. And they may arise if the partner violates obligations to the budget.