The company Erich Krause could not cancel the additional charge of taxes

The Arbitration Court of the Moscow District upheld the judicial acts of two lower instances, which confirmed the legality of the decision of the tax authority, which obliged Erich Krause Finland to pay about 45 million rubles in taxes and fines to the Russian budget.

Interdistrict Inspectorate of the Federal Tax Service of Russia No. 47 for Moscow established that Erich Krause, when calculating income tax, unlawfully inflated expenses equal to the cost of advertising services allegedly provided to it by the Cyprus company Eeama East European Advertisement and Marketing Agency (hereinafter Company). The Federal Tax Service Inspectorate, by its decision of September 1 2017, obliged the Finnish company to pay more than 28 million rubles of income tax arrears, about 11 million rubles of interest and about 6 million rubles of fine, as well as make the necessary corrections to the documents of accounting and tax reporting.

As the taxpayer explained that the Cypriot company provided him with Erich Krause advertising services in the programs “Moya igra” on NTV channel. The tax inspectorate, however, found that the Company was a one-day company, created a month before the conclusion of the contract with Erich Krause and not conducting any other activities besides this contract. The Finnish tax authority informed the Federal Tax Service that from the accounts of Erich Krause Finland, funds to the Company address were transferred to accounts with Czech banks.

The court of first instance in the decision indicated that the real performers of the services for creating and placing commercials in "Svoya igra" were the Riks-Kom advertising agency and the NTV television company itself, which placed the advertisement. All services were provided without involving Eeama East European Advertisement and Marketing Agency, the court stated.

At the same time, as indicated in the judicial act, the amount of money received by Rix-Com was 15 times less than the amount of money received from Erich Krause Finland in the accounts of the Cyprus Company for allegedly provided advertising services.

Source: http://kad.arbitr.ru/Card/88865f48-499a-4ebe-a3e1-cb6cdc2e3643

http://kad.arbitr.ru/Document/Pdf/88865f48-499a-4ebe-a3e1-cb6cdc2e3643/54c4d968-c5bb-48c5-b3f9-3e64c351b78d/A40-40782-2018_20200130_Reshenija_i_postanovlenija.pdf?isAddStamp=True