- Tax consulting within M&A deals and IPO projects
- Tax assistance on the establishment and liquidation of business in Russia
- Tax advice in corporate and business restructuring projects
- Consulting non-residents on tax aspects of foreign investments to Russia
- Advising Russian companies investing abroad
- Tax expertise of commercial, financing and investment agreements
- Tax advice and assessment of transactions
- Advising financial and non-financial institutions on tax aspects of project financing
- Advising on tax aspects of acquisitions and transfers of real estate in Russia and abroad
- Tax disputes
- Advising on transfer pricing issues
- Assisting in preparation of corporate and personal tax returns (both for residents and non-residents)
- Advising on personal income tax and social security issues
- Advising on application of CFC (controlled foreign companies) rules
- Advising on voluntary declaration of assets and foreign bank accounts by individuals
Recent experience includes:
- As part of a comprehensive analysis of business structure, advised Russian group of development companies with foreign corporate and financial structure regarding corporate, organizational and finance restructuring which was required to minimize potential tax risks trigged by recent changes of the Russian tax law (controlled foreign companies rules, tax residency of legal entities). Besides, tax specialists analyzed potential transfer-pricing risks, assessed personal tax risks of the group shareholders, provided solutions to exclude such risks and developed a safe model of financing future development projects, which would ensure mitigation of ax risks for the intercompany creditors and borrowers.
- Advised the shareholder of one of the largest fishery companies in Russia in connection with protection of its interests and further sale of all the shares to another shareholder and the group. ALRUD tax team supported the client in the deal, serving his best interests from the tax perspective to structure the deal in the most efficient tax way, avoid extra taxation (which was crucial for the client considering the amount of the deal) and other associated tax risks. ALRUD tax specialists assisted in execution of all documents to ensure application of the Double Tax Treaty, considering that the client is a Sweden citizen and at the same time a tax resident of Switzerland.
- Advised joint venture of the leading European satellite operator regarding potential tax risks and implications for the Russian part of the business due to recent changes to the Russian tax law (mostly related to introduction of the tax residency concept for legal entities). After deep analysis of the client’s corporate, commercial and organization structures tax team discovered major tax risks which might arise in Russia and developed several options of restructuring which would ensure client’s compliance with the Russian tax law. As a second stage of the project, tax team developed the ‘road map’ and detailed guidance for execution of the chosen restructuring.
- Advised the shareholders of a large industrial business. Assessed personal tax risks, analyzed the applicability of the Federal law "On the voluntary declaration of assets and accounts (deposits) in banks and on amendments to certain legislative acts of the Russian Federation", developed personal holding mechanisms, and elaborated an action plan for a tax-free business restructuring.
- Advised large Russian development holding during the process of restructuring related to the adoption of the law on “deoffshorization” of Russian economy. Provided client with a complex memorandum regarding potential tax risks, consequences and additional responsibilities of shareholders in connection with recent changes in Russian tax legislation, analyzed and assessed risks of foreign companies’ recognition as Russian tax residents, elaborated options for restructuring and for corporate and financial optimization of the group.
- Advised leading European real estate management firm regarding Russian taxation of prospective M&A transaction. With the assistance of the specialists of the tax practice, the client chose the best option to structure the deal in order to avoid tax risks and excessive taxation. Besides, ALRUD tax and corporate teams developed pre-deal action plan on profit distribution in order to minimize the potential tax risks for the client.
- Advised a Polish manufacturing company in connection with import and sales of equipment in Russia. Analyzed customs and tax consequences, including the application of transfer pricing rules and risks of creating a permanent establishment for the foreign company. Proposed recommendations on elaboration of import and sale structure based on a comprehensive analysis and the specifics of the client business, taking into consideration the possible tax and customs risks.
- Advised premium cars manufacturer on Russian tax implications of the global advertising campaign involving provision of valuable prizes. Based on comprehensive analysis of the advertising campaign we provided the client with comments concerning taxation of recipients’ income from such prizes, obligations of participants of the advertising campaign, possibilities of compensation of tax amounts to the winners, and the obligation to pay the Russian VAT.
- Implemented a comprehensive project on development of optimal structure of offsetting the debt within the group of Russian and foreign oil companies, taking into consideration the tax consequences and risks. Assessed the possibility of reducing the costs of currency conversion at debt repayment. The total amount of transactions in the course of the restructuring is about USD 74 mln.
- Provided legal opinion on possible ways of restructuring the largest Russian light industry holding specializing in development, production and sale of professional and special clothing; our memorandum contained recommendations regarding selection of optimal corporate and organizational structure, possible ways of its implementation, financial and tax aspects of such implementation and possibility of its operation. The special requirements and restrictions applicable to the company due to its participation in the public procurement system were also taken into consideration.
- Advised a leading foreign company operating in the fields of desulphurization and oil and gas processing on the ways of importing equipment in Russia. Conducted a comprehensive analysis of tax risks and consequences taking into consideration specific activity and corporate structure of the client, on the basis of which the client has chosen the best way of importing equipment.
- Advised on tax aspects of implementation of a complex territory development project, involving construction of offices, residential premises, hotels, commercial and social infrastructure objects. Developed a tax-wise optimal corporate and contractual structure for the project implementation.
- Advised a UK energy service company on imposition of VAT on oil pipeline insulation services rendered to a participant of Sakhalin-2 project. Analyzed the company’s obligation to register a permanent establishment in Russia and assessed the level of this risk.
- Advised underwriters Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc. and Goldman, Sachs & Co. as representatives of the several underwriters in connection with the SEC-registered initial public offering of Class A shares of Yandex N.V. Analysed possible tax risks and provided the underwriters with the complex evaluation of auditor’s opinion for the prospect.
- Represented one of the leading Russian producer of longitudinal welded pipes in ICC dispute against largest German heavy plate producer on collection of damages for more than EUR 150 mln. The dispute raised during performance of one of the major energy-related projects in Russia. ALRUD tax team prepared tax opinion for the London arbitration court to support the Client in collecting part of the damages which included indirect taxes paid by the Client.
- Represented a distributor of consumer electronics, audio and video equipment before the tax authority and court by arguing that the debt secured by guarantee was rightfully included in doubtful debts. The case law in this area was unfavorable for taxpayers. The court upheld our arguments and invalidated the decision thus creating precedent in favor of taxpayers.
- Represented interests of a beauty and personal care products manufacturer in appealing the additional tax charged upon results of tax audit. The court declared that the amount of additionally charged taxes was illegal in full, and collected the full amount of court expenses from tax authorities in the amount of 400,000 rubles.
- Successfully challenged in court the claim of the Pension Fund of Russia in the amount of 50 million rubles within procedure of bankruptcy of an insurance company.
- Represented largest Baltic oil company in a dispute with a Russian company that tried to collect from our client VAT in the amount of 35 mln.roubles. Our lawyers convinced the court that the claim should be dismissed without consideration basing on procedural grounds. The ruling of the court of first instance in our favour was upheld by the appellate court.
- Provided legal support to a leading Russian consulting company during a field tax audit. Represented the client’s interests in submission of objections to the tax authorities as well as in appellation in the higher tax authorities. On the pre-trial stage the additionally assessed amount was decreased by 50%. On the trial stage several claims of the tax authorities related to expenditures (in particular, the tax authorities insisted that the company illegitimately included the amounts of license payments, lease payments and bad debt reserves in the amount of expenditures for tax assessment purposes) as well as claims related to personal income tax, were declared illegal.
- Performed tax due diligence regarding acquisition of independent organizer of exhibitions in Russia by the German exhibition industry leader.
- Supported a Russian investor in acquisition of a strategic business object – a sea port (a natural monopoly object). Conducted comprehensive legal and tax audit of the acquired object.
- Advised a major Chinese bank contemplating starting business in Russia on tax and currency issues of banking activity.
- Advised a major Russian bank on issues related to transferring the salary to the foreign accounts of its employees working in the bank subsidiaries in foreign states.
- Advised a major Luxembourg bank on application of Russian currency control regulations to the accounts of Russian citizens in the bank.
ALRUD is recommended for Tax.
(PLC Which Lawyer?)
Recommended for Tax.
(The Legal 500)
ALRUD is one of Russia’s leading tax firms.
(International Tax Review, World Tax 2011)
One of only 3 national firms recommended for Tax in Russia.
(Tax Directors Handbook 2011)
“I simply can’t remember tax problems having caused me a sleepless night since we’ve been using ALRUD, remarked one client”.