Tax and accounting advisory

Accounting and financial reporting:

• development and updating of accounting policies, including other internal regulatory documents integral to these policies, for example, methodologies for fair value assessment of securities and derivative financial instruments;
• design and revision of business model classification frameworks and recommendations for financial assets (liabilities) by business models;
• development and updating of the chart of accounts;
• development and updating of business transaction directories;
• development and updating of protocols for collaboration between accounting departments and other units, development of business requirements for portfolio-based asset (liability) accounting;
• advisory on accounting for new transactions, accounting objects and transactions, including pre-implementation review of management decisions, business lines, and draft agreements;
• methodological support and liaison with ABS (Automated Banking Systems) vendors, including testing participation.

• analysis of the applied tax policy and existing activities of the financial institution for compliance with Russian tax law. Assessment of identified inconsistencies of the tax policy with the requirements of the tax legislation and existing court practice on tax disputes;
• development of analytical tax accounting registers for new accounting objects, transactions, or business lines, procedural guidelines for the algorithm for maintaining tax registers;
• assessment of the adequacy of internal controls for tax calculations, tax reporting, transfer of payments to the budget system of the Russian Federation, assessment of the tax risk management system;
• identification of risks related to incorrect income tax base calculations, provision of a quantitative assessment of the possible consequences of such risks;
• evaluation of risks of applying tax reconstruction (Article 54.1 of the Tax Code of the Russian Federation) based on the economic substance of transactions;
• assessment of compliance with the requirements of Section V.1 of the Tax Code of the Russian Federation, specifically, the issues of formalised/actual procedures of the organisation aimed at monitoring compliance with transfer pricing control requirements;
• audit of tax losses carried forward in terms of the period of occurrence, assessment of the organisation's approach to ensuring and preserving documentation retention practices, accounting registers and other future tax control measures and other factors affecting the probability of revision of the amount of loss subject to offset in terms of possible adjustment of tax bases;
• methodology review for other significant taxes and fees: property tax, transport and land taxes, personal income tax, and corporate income tax for foreign entities that receive income from Russian sources.

• Detailed report (slides) outlining risks, accounting deficiencies, and actionable recommendations to eliminate and (or) minimise them.
• Draft accounting policies or other internal documents.
• Draft tax register with compilation guidelines.
• Exhaustive answer to a written question or a set of oral clarifications on the accounting of the transaction in question to mitigate unfavourable financial consequences due to accounting errors.
• Minimised regulatory and financial (tax) risks.
• Assurance that there are no deficiencies in the financial and tax accounting, and that the company’s interests are protected in the event of audits by supervisory authorities or court proceedings.
• Efficiency in time and resource management by outsourcing intricate accounting/tax matters to FBK experts.