“Miracle won’t happen.” How to Legally Optimize Your Business
This conversation is about tax optimization tools and the principles of separation of functional units in a group of companies.
It is imperative to understand that the tax optimization toolbox is finite. Moreover, not only we or you know about them, but also the tax authority. Therefore, in all cases when you are trying to “take out” something, the tax authority is well aware of this.
Yes, sometimes the legislator gives us gifts – makes legislative changes on some forms of legal entities or methods of doing business, and suddenly there are opportunities for additional methods of tax optimization. But in general, the number of instruments is finite, and no miracle will happen now.
We do not have a task to create a situation in which, in the case of using tax optimization tools, the regulatory authorities will not have any questions to you. Our task is to create a situation in which you will have the correct answers.
First, remember: tax optimization cannot be the only goal of business transformation, but only a side effect. In addition, only income taxes can be optimized. In terms of social contributions and indirect taxes, you can only keep your finger on the pulse and be no better or worse than others.
Since legal tax optimization is possible within the framework of separating functional divisions and building a group of companies, I would like to emphasize: The Supreme Arbitration Court has unambiguously and more than once indicated that the separation of different types of activities (for example, production and sales) does not indicate an unjustified tax benefit (even if it is interdependent companies), on the contrary, is consistent with business practice.
We will consider optimization tools using the example of functional links in a group of companies that are engaged in production. This is very convenient, since manufacturing companies have the most complex business processes and require more support functions. Thus, what works with production workers is in demand by everyone else, but this rule does not work in the opposite direction.