FTS and MTS signed an agreement to expand the information interaction

Telecommunications operator MTS has announced the signing of the Federal Tax Service (FTS of Russia) of the Agreement on enhanced information interaction (horizontal monitoring), under which the tax authority will monitor the financial and business operations of MTS in real time, and the company will be able to coordinate their positions in advance on tax matters with the Federal Tax Service of Russia. First being introduced in Russia horizontal monitoring mechanism aimed at increasing the predictability of tax regulation and the quality of tax administration. Along with MTS similar agreements with the Federal Tax Service of Russia on the horizontal monitoring - for the first time in the Russian tax practice - signed the "Inter RAO UES", JSC "RusHydro" and representation British auditing company Ernst & Young in the CIS. Horizontal monitoring provides full disclosure of their activities on the part of taxpayers, which allows tax authorities to tax audits on a regular basis. In cases where there are disputes on taxation of transactions, the company can provide information on completed or proposed transactions to obtain clarification on the matter, and further adjust its tax policy. According to the company, the procedure is an agreement on the horizontal monitoring involves a high degree of openness the taxpayer for the tax authorities, the transparency of transactions and the willingness of the taxpayer for constructive professional dialogue with the tax authorities. This mechanism is beneficial to taxpayers, as it allows in many cases to reduce tax risks by increasing the predictability of taxation, to reduce the uncertainty that arises in the interpretation and application of tax laws.
 
After the signing of agreements with the Federal Tax Service of their intention to jointly develop proposals and amendments to the existing legislation in order to further improve the mechanism of interaction of the tax authorities and taxpayers.