Liquidation of a group of companies with tax risks of 1,5 billion rubles ($ 20 million)

1,5 billion rubles ($ 20 million) — the “legacy” left by the former financial director, which prevented the proper operation and development of a 6-company group. We were entrusted with the liquidation of 5 companies, which were successfully closed for only 190 million rubles ($ 2,5 million).

Client:

A group of 6 companies engaged in the import of construction equipment. 10 billion rubles ($ 133,3 million) per year — total revenue of the group of companies.

Situation:

The company's former financial director left significant problems — tax risks amounting to 1,5 billion rubles ($ 20 million). The company's management decided to "bury" all problems in the past, refresh the company, and start anew.

Solution:

We were entrusted with the liquidation of 5 out of 6 companies. To protect the companies from unfounded claims of the Federal Tax Service, additional tax charges, and penalties, we carefully prepared for the liquidation process:

• analysed the accounting, identified tax risks, and gathered information within our access level;
• conducted a refreshment of the accounting in order to minimise violations;
• established effective communication with the authorities to achieve the desired results;
• initiated the voluntary liquidation procedure of private companies.

Outcome:

All 5 companies were successfully liquidated for a total cost of only 190 million rubles ($ 2,5 million). The liquidation of the 6th company was handled by another law firm, resulting in fines and financial sanctions amounting to 400 million rubles ($ 5,3 million). One of the companies had an unclosed transaction passport, with the delivery deadline approaching and the risk of prosecution under Article 193 of the Criminal Code. We managed to close the transaction passport by making amendments to the foreign exchange contract.