The Russian Supreme Court confirms that the limitation period for tax refunds begins from the date a court ruling enters into force
The Supreme Court reviewed case No. A40-195715/2023 concerning a dispute between the company “Ilged” and the tax authority over the refund of overpaid tax in the amount of RUB 11 million. The basis for the refund was a court decision that found the inclusion of the building in the list of properties taxed based on cadastral value to be unlawful.
The Federal Tax Service agreed to refund only RUB 8.6 million, citing the expiration of the three-year limitation period for payments made in 2019. The courts of first instance and appeal ruled in favor of the taxpayer, calculating the limitation period from the date the court decision entered into force (12.11.2022). The court of the circuit (cassation), however, held that the period should be calculated from the actual dates of payment and denied part of the refund.
The Supreme Court overturned the cassation ruling and upheld the decisions of the lower courts, stating that the limitation period for refund claims should be calculated from the moment the taxpayer acquired the legal right to a refund — that is, from the date the court decision entered into legal force. The full reasoning of the Supreme Court’s decision has not yet been published.
