The performance from year to year

Objective

According to the results of an audit of our client, a leading supplier of transport safety equipment, tax authorities found indications of tax offences. The cumulative amount of accrued taxes and penalties exceeded 80 million Rubles. A criminal probe was launched against the head of the company, in connection with a large tax evasion. The company was facing significant financial and reputation losses and its director was facing criminal punishment. We had two tasks - first of all, we had to prevent the tax authorities from freezing the company’s accounts and arresting its property, since it was important for the company to continue its activity. Moreover, it was necessary to invalidate the resolution of tax authorities and put a stop to the criminal prosecution of the company’s head. 

Resolution

On our application, the arbitration court applied interim measures and suspended execution of the resolution of tax authority. During the case review we were able to prove the validity of transactions executed by the company, existence of economic benefit and manifestation by the client of due discretion and care. As a result we managed to achieve a complete invalidation of the resolution of tax authority. Despite the subsequent appeals of the tax authority, we were able to defend it during those appeals. 

Result

The client saved 80 million Rubles and strengthened its business reputation. Criminal charges against the head of the company were dropped.