Simplified procedure for registration with tax authorities of foreign organizers of the Olympic Winter Games in Sochi

The Federal Tax Service of Russia has prepared a Draft Order "On the Approval of the Form of Notification of Registration With a Tax Authority of Organizations Acting as Foreign Organizer of the XXII Olympic Winter Games and XI Paralympic Winter Games of 2014 in Sochi."

According to the prepared document, a new Form No. 2014.1-Uchyot "Of Notification of Registration With a Tax Authority of Organizations Acting as Foreign Organizer of the XXII Olympic Winter Games and XI Paralympic Winter Games of 2014 in Sochi" will be adopted as provided for by Clause 4.1 Article 83 of the Tax Code of the Russian Federation.

It is to be recalled that the Tax Code of the Russian Federation provides for a simplified procedure for registration with tax authorities of a series of organizations which carry out a short-term entrepreneurial activity on the territory of Russian Federation in connection with the delivery of the XXII Olympic Winter Games and XI Paralympic Winter Games of 2014 in Sochi. In particular, the privileged procedure for registration with tax authorities covers the following types of foreign organizations: foreign marketing partners of the International Olympic Committee, official broadcasting companies and foreign organizers of the XXII Olympic Winter Games and XI Paralympic Winter Games of 2014 in Sochi. The Federal Law dd. 23.07.2013 No. 216-FZ introduced supplements with regard to the application of privileged registration procedure to organizations acting as foreign organizers into the Tax Code of the Russian Federation. In addition, the period of during which foreign organizers may participate in the preparation of the XXII Olympic Winter Games and XI Paralympic Winter Games of 2014 in Sochi is restricted to twelve months, including the entire period of the Olympic Games or a part thereof. In terms of its substance the approved form is actually similar to the form of notification of registration with a tax authority of organizations acting as foreign marketing partner of the International Olympic Committee and/or official broadcasting company approved by the joint order of the Ministry of Finance of Russia and Federal Tax Service dated 01.04.2011 No. ММВ-7-6/242@. Nevertheless, unlike the currently applicable form, the new Form No. 2014.1-Uchyot "Of Notification of Registration With a Tax Authority of Organizations Acting as Foreign Organizer of the XXII Olympic Winter Games and XI Paralympic Winter Games of 2014 in Sochi" has no attachments which disclose founders of a foreign organization.

 

In our opinion, it refers to the fact that according to Clause 3, Article 3 of the Federal Law "On the Organization and Delivery of the XXII Olympic Winter Games and XI Paralympic Winter Games of 2014 in Sochi, the Development of the City of Sochi as Alpine Climatic Resort and the Introduction of Amendments to Certain Legal Acts of the Russian Federation", foreign organizers of the Olympic Games and Paralympic Games are "the International Olympic Committee, the International Paralympic Committee and organizations in which the International Olympic Committee participates directly or indirectly or which are controlled by the International Olympic Committee in accordance with the list to be approved by the Government of Russian Federation". The list of such organizations was established by the Russian Government Order dated 30.12.2009 No. 2120-r (as amended on 18.04.2013) "On the List of Organizations Acting as Foreign Organizers of the XXII Olympic Winter Games and XI Paralympic Winter Games of 2014 in Sochi." Therefore, unlike IOC marketing partners, including official broadcasting companies, foreign organizers are not third-party but those organizations who directly report to the IOC. Nevertheless, in our opinion, an organization should disclose its founders when it is registered with tax authorities, as it would help avoid potential difficulties which may occur during tax control administration.

 

In accordance with the Russian Government Regulation dated 25.08.2012 No. 851 "On the Procedure for Disclosure to Federal Executive Authorities of the Information on the Preparation of Draft Laws and Regulations and Results of Public Discussion Thereof" and subject to the provisions set forth in the Rules for assessment by federal executive authorities of the regulatory effect of the draft laws and regulations, draft amendments to draft federal laws and draft decisions of the Council of the Eurasian Economic Commission approved by the Russian Government Order dd. 17.12.2012 No. 1318, the notification of preparation of the Draft Order "On the Approval of the Form of Notification of Registration With a Tax Authority of Organizations Acting as Foreign Organizer of the XXII Olympic Winter Games and XI Paralympic Winter Games of 2014 in Sochi" and the draft text are available in the official website at http://regulation.gov.ru/project/6492.html.


Postnikova N. Y., a senior researcher;
Pushkaryeva N. A., a junior researcher.