Yandex failed to convince the Arbitration Court of the validity of the income tax reduction and is now obliged to pay almost 1.7 billion rubles. The case file has been published in the court’s electronic database. The conflict is related to the project to build a new Yandex headquarters in Moscow on Vorobyovy Gory. Previously, there was the Korston hotel complex.
Author:
https://rb.ru/author/ntihonov/
Subscribe to RB.RU on Telegram
In November 2022, Yandex reduced the tax by 1.67 billion rubles in the updated income tax return for 2021. As a basis, “Korston” was indicated there as a non-operating expense (8.4 billion rubles), as the residual value of liquidated structures. The company resorted to the provision of the Tax Code (paragraph 8, clause 1, article 265), which allows including in the list of such expenses the expenses for the liquidation of fixed assets being decommissioned.
The Federal Tax Service did not agree with this. They said that it is necessary to pay attention to the true economic significance of the operation. Since the costs are necessary for the construction of a new headquarters, it is impossible to write them off through depreciation and therefore they must be included in the original cost.
“Since upon liquidation the hotel complex loses its usefulness within the meaning of the provisions of Articles 257 and 258 of the Tax Code of the Russian Federation, it is obvious that there is no “continuation of consumption of useful properties of objects that no longer exist”, “second life” of the liquidated fixed assets within the cost of the new ones, taking into account, controversially, that there are no expenses in the order of the initial cost of the new fixed asset,” the court decision says.
Yandex told TASS that it decided to challenge this decision by filing an appeal.
In June, Yandex filed a lawsuit against a Far Eastern company for the right to the Open Kitchen trademark. A year ago, the corporation began publishing a magazine of the same name.
Author:
Nikolai Tikhonov
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
