Energy Consulting Takes Part in Workshop on Fuel & Energy Complex
OREANDA-NEWS. December 05, 2013. Almin Rabinovich, the Chief Methodologist of Energy Consulting, has informed on specifics of VAT & Fixed Asset Accounting in oil & gas producing companies during his attendance at the XI All-Russian Workshop "Taxes and Fuel & Energy Complex - 2014" held in Moscow within the framework of the International Forum "Pravo TEK-2013".
The XI All-Russian Workshop "Taxes and Fuel & Energy Complex - 2014" has brought together representatives of companies operating in the Russian fuel & energy complex, authorities, and consulting companies for discussion of topical issues focused on tax planning and risk management in entities involved in the fuel & energy complex of the country. Participants scrutinized practical cases and shared their vast experience.
Almin Rabinovich, the Chief Methodologist of Energy Consulting, reviewed in his report such specific and topical matters as VAT & Fixed Asset Accounting in oil & gas producing companies in view of recent explanations of regulatory bodies, legal resolutions, and tax risk assessment.
In connection with VAT calculation for the construction of mines, wells and other production capacities, Almin Rabinovich highlighted the desire of the Russian Federal Tax Service to go back of disputes regarding the application of VAT deduction on contracted construction & installation works on the basis of KS-2 forms, and also noted the current lack of consent from the RF Ministry of Finance with respect to this refusal.
As for other works performed by other producing companies at the exploration and assessment phases, the Chief Methodologist of Energy Consulting has paid special attention to the fact that there is no any links between natural resources development cost accounting for the taxation purposes, on the one hand, and VAT deduction with respect to these cost, on the other hand.
In the part of FA financial & tax accounting Almin Rabinovich disclosed such issues as making reserves for meeting liabilities on winding up, depreciation of updated and reconstructed fixed assets, repair and overhaul criteria, notably, upon side-tracking in the course of extraction of solid mineral resources.
Almin Rabinovich: "All amendments coming into force in 2014, which allows to take into account the side-tracking work as the natural resources development costs regardless of the nature of these works, shall be related to production wells only. These updates shall not be applied to other types of wells that are part of the operating wells (key wells, observation wells) subjected to the valid logic set out in the famous enactment issued by the Presidium of the Supreme Arbitration Court with respect to side-tracking".
Participants of the webinar discussed as well the key trends of the Russian tax policy for the years 2014-2016, transfer pricing, out-of-court tax settlement, amendments and supplements in the international taxation systems and other issues.