Electronic Tax Filling Recommences in Russia

Tax inspectors have resumed accepting electronic tax filings, with new regulations as of 25.11.2010. According to the new rules, a notice concerning a Power of Attorney must be submitted with every tax return.

This is according to information approved under  Decree of the FTS # MM-№ ММ-7-6/534@ from November 02, 2009 and implemented based on  Decrees of the FTS # MMB-7/610@ from November 17, 2010.

The process itself is largely unchanged, but taxpayers will now need to fill in additional information regarding the Power of Attorney, especially if the tax returns are appended with a digital signature (EDS).  Accountants are considered only authorized representatives of accompany and thus can only submit documents to the federal government with a Power of Attorney. Previously this document had to be presented to the IFTS (Federal Tax Agency’s Inspectorate)—but now a scanned copy can be sent via the accounting service provider. If the EDS is filled out by the taxpayer himself, the Power of Attorney is naturally unnecessary.  (Article 27  of the Tax Code RF)

If the tax payer has included an EDS in his or her electronic tax returns, he or she should remember to send the Power of Attorney to be reviewed, and reference it in every subsequent electronic submission.

Inspectors advise tax payers to "reherse" submitting their electronic documents by first forwarding the Power of Attorney to their accountant, and then submitting a confirmation of data from a previous return with the Power of Attorney referenced. If the inspector has made a mistake in recording the Power of Attorney, the tax payer along with the IFTS and the service provider can correct it, and there will be no errors in the year’s actual report.