The Federal Tax Service to gain the authority to audit businesses regardless of their registration location
The Federal Tax Service of Russia plans to implement the principle of extraterritoriality in the conduct of audits of businesses. The corresponding amendments are included in the draft revisions to the Tax Code.
Under the new system, any authorized tax inspection office will have the right to conduct an audit, not only the office in which the company is registered. This measure, included in the draft amendments, is intended to balance the workload among tax authorities.
The changes are particularly relevant in the context of the increasing number of electronic transactions and remote business operations. Accordingly, organizations are recommended to actively utilize electronic interaction with the Federal Tax Service to expedite information exchange and minimize the risk of errors or delays during audits.
The new system is aimed at enhancing the transparency of tax administration and ensuring equal enforcement of tax compliance regardless of the region in which a company is registered.
