Friday, November 15, 2019

Gazprom Integrates All Companies in Tax Regime

October 22, 2019

Image: Gazprom

Russian energy company Gazprom said that six companies of the Group – Gazprom Dobycha Astrakhan, Gazprom Transgaz Samara, Gazprom Transgaz Saratov, Gazprom Transgaz Tchaikovsky, Gazprom Transgaz Ufa, and Gazprom Transgaz Volgograd – will join the tax monitoring regime on January 1, 2020.

The conglomerate, which carries on the business of extraction, production, transport, and sale of natural gas, is actively working to integrate the Group's companies into the tax monitoring system.

The transition to this form of tax control aims first and foremost to further increase the transparency of the Gazprom Group's activities.

The step-by-step adoption of this mechanism by other companies within the Group will continue in the future.

The first subsidiary of Gazprom to join the tax monitoring regime was Gazprom Export. The subsidiary transitioned to tax monitoring on January 1, 2019.

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.

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