Nikita Deynega commented to DP on the attempt of the Federal Tax Service to collect RUB 0. 7 bn from a major property developer from St. Petersburg

In 2022, based on the results of an audit, the Federal Tax Service additionally charged BFA-Monolit with VAT, penalties and fines totalling over RUB 722 mn. Shortly before the audit, Lyudmila Kogan, who owned 30% of the company, resigned from the founders.

Having failed to achieve repayment of the debts, the Federal Tax Service brought BFA-Stroy to responsibility, having identified signs of interconnectedness between the two organisations. In particular, Ludmila Kogan still owns 30% in this company. In addition, both companies acted as contractors in residential and commercial construction, including work for BFA-Development Group.

At the moment, the tax authorities have secured arrests of BFA-Stroy’s accounts in nine banks and registration actions with 11 cars and five lorries. According to the Commercial Court filing, both companies are challenging the decisions of the Federal Tax Service and lower courts.

‘This case may be an example of the Federal Tax Service’s fight against actions aimed at transferring business to other persons through the transfer of employees, contracts, transfer of fixed assets and inventory in order to avoid foreclosure on liquid assets under claims of the tax authority,’ Nikita Deynega, Partner and Head of Tax and Administrative Law Practice at Maxima Legal, explained to the Delovoy Petersburg newspaper.

According to the expert, such activity of the tax authority is not something new, the service has long been carrying out systematic work to increase the collection of taxes and fees and to combat evasion from compulsory collection.

‘Attempts to avoid fulfilment of tax obligations through transferring business to related parties have elusive prospects,’ Nikita summarised.

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