Over 1 billion rubles ($13,3 million) of tax risks successfully avoided

The trading network avoided the fragmentation of the business as a result of tax risks.

Situation:

The retail chain, specializing in the sale of delicacies, registered each individual store as a separate legal entity applying a simplified tax system.

Solution:

Timely tax check-up allowed the company to identify risks and to prepare for the tax authority's potential application of a business fragmentation scheme. The company's annual revenue exceeded 10 billion rubles ($ 133,3 million). The consequences of implementing such a scheme could have led the enterprise to bankruptcy.

Result:

Through our joint efforts, it was successfully demonstrated to the tax authority that there is no centralized management or other indicators of business fragmentation. The parent company is, in fact, a marketplace, while the individual stores determine their policies autonomously. The company continues its operations, with some high-revenue stores operating under the general taxation regime and others continuing under the simplified tax system.