Constitutional Court of Russia recognized the lawfulness of seizure of documents from the counterparty

The Constitutional Court of the Russian Federation clarified a number of provisions of the Tax Code related to the issues of seizure of documents from the counterparty of the taxpayer.  The issue, which was considered on the example of a specific case, has long been the subject of disputes and contradictions between the tax authorities and companies.

We are talking about the right of the tax authority to seize documents from the counterparty of the organization that is being audited. In its definition, the Constitutional Court of the Russian Federation clarified the concept of seizure of documents and objects, which makes it possible to understand what is meant by this.

First of all, the seizure can be carried out in relation to the documents and items that are related to the subject of the audit.

Such documents and items must relate to the essence of the tax audit and confirm the fact of the offense. Employees of the tax authority during the seizure are obliged to report in respect of whom and for what offense the audit is being carried out, as well as for what reason the documents are being sought here.

Thus, the seizure resolution itself must contain information that reflects both the subject of the audit and the rationale for searching for the necessary documentation. What is more, the counterparty has the same rights as the person being audited.