Repeated tax investigations are illegal

The Constitutional Court of Russia has ruled that it is against the Constitution and, therefore, illegal to launch a subsequent tax investigation, when the results of the previous investigation have been considered by court, and the court's decision has come into force.

Article 89(10) of the Tax Code allows tax authorities to investigate taxpayer's affairs repeatedly as a means of control by the superior offices over the local tax inspections. In practice such investigations can be costly and extremely time-consuming for taxpayers. Now tax authorities can no longer begin investigation if the period in question has already been examined and the results considered by court.

The reason, the Constitutional Court gave to the decision, is that such subsequent investigation is de facto an out-of-court challenge of a judicial decision.

The decision of the Constitutional Court has the power of law and came into force on March 17, 2009.


April 28, 2009