Payment of 2 million rubles ($ 27 000) of additional charges, successful closure of the company without an audit

After the tax risks had been identified, a strategy was developed to minimize the payment of additional charges. The private company was successfully liquidated without a tax audit.

Situation:

The tax check-up revealed:

• significant tax risks regarding profit;
• risks amounting to 2 million rubles ($ 27 000) of value-added tax (VAT).

The amount of additional charges for VAT was insignificant for the client.

Solution:

The decision was to pay the additional charges for VAT due to the insignificance of the amount for the client. Additionally, VAT administration is considerably more rigorous than the profit tax.
After paying the additional charges for VAT, the balance was submitted, and a notice for liquidation was filed.

Result:

The private company was successfully closed without any tax audit, with only the payment of additional charges for VAT.