Section 2. Taxpayers and Payers of Fees. Tax Agents.

Representation in Tax Legal Relations

Chapter 3. Taxpayers and Payers of Fees. Tax Agents

Article 19. Taxpayers and Payers of Fees

Taxpayers and payers of fees shall be defined as organisations and individuals who are under an obligation, under this Code, to pay taxes and/or fees, respectively.

In the order prescribed by this Code the branches and other separate subdivisions of Russian organisations shall discharge their duties of these organisations in the payment of taxes and dues in the place of the location of these branches and other separate subdivisions.

Article 20. Related Persons

1. For purposes of taxation, related persons shall be defined as individuals and/or organisations the relations between which may exert influence on the conditions or economic results of their activity or activity of persons they represent, namely:

1) one organisation shall take a direct and/or indirect part in another organisation, and the summary share of such participation makes up over 20 per cent. The share of the indirect participation of one organisation in another one through the sequence of other organisations shall be determined in the shape of a product of the shares of direct participation of the organisation in this sequence of one in another one;

2) one individual is subordinate to another individual as to his or her superior; al as to his or her superior;

3) in accordance with the family law of the Russian Federation, the persons are spouses, relatives, are related to each other by marriage, are an adopter and an adoptee or a guardian and a ward.

2. The court may recognize persons as interdependent on other grounds, which are not provided for by Item 1 of this Article, if the relations between these persons may influence the results of transactions in the sale of goods (works, services).

Article 21. Rights of Taxpayers (Payers of Fees)

1. Taxpayers shall have the right to:

1) receive from the tax authorities at the place of registration free information on current taxes and fees, laws on taxes and fees and other acts containing rules of tax and fee legislation, and also on the rights and duties of taxpayers, and powers of the tax authorities and their officials;

2) receive written explanations from the tax authorities and other authorized state bodies about application of legislation relevant to taxes and fees;

3) use tax benefits provided there are grounds for it and in accordance with the procedure established by tax and fee legislation;

4) receive deferral, the right to pay by installments, a tax loan or an investment tax credit in accordance with the procedure and on conditions set by this Code;

5) the timely credit or refund of tax, penalty interest, fines amounts paid or collected over and above the correct amount;

6) represent their interests in tax legal relations in person or via their representative;

7) provide explanations to the tax authorities and their officials on the calculation and payment of taxes and fees, and also on protocols of audits conducted;

8) be present at a field tax audit;

9) receive copies of a tax audit protocol and decisions of the tax authorities, and also of tax notices and requirements for tax payment;

10) require compliance with tax and other legislation from tax officials while the latter perform actions with respect to taxpayers;

11) not to comply with unlawful acts and demands of the tax authorities and their officials which are at variance with this Code or other federal laws;

12) appeal against acts of the tax authorities and actions (inaction) of their officials in accordance with the established procedure;

13) require keeping a tax secret;

14) claim full compensation for losses caused by unlawful decisions of the tax authorities or unlawful actions (inaction) of their officials in accordance with the established procedure.

2. Taxpayers shall also have other rights under this Code and other acts of tax and fee legislation.

3. Payers of fees shall have the same rights as taxpayers.

Article 22. Guarantee and Protection of Rights of Taxpayers (Payers of Fees)

1. Taxpayers (payers of fees) shall be guaranteed an administrative and judicial protection of their rights and legitimate interests.

The procedure for protection of taxpayers rights shall be established by this Code and other federal laws.

2. The rights of taxpayers shall be secured by the relevant obligations of tax officials.

Failure to fulfill or improper fulfillment of obligations to secure the rights of taxpayers shall involve liability under federal laws.

Article 23. Obligations of Taxpayers (Payers of Fees)

1. Taxpayers shall be required to:

1) pay taxes and fees imposed in a lawful way;

2) register with the tax bodies if this Code provides for such an obligation;

3) keep records of their income (expenses) and taxable items in accordance with the established procedure if legislation on taxes and dues provides for such an obligation;

4) file tax returns for taxes they are required to pay with the tax authority at the place of registration in accordance with the established procedure if legislation on taxes and fees provides for such an obligation, as well as accounting in accordance with the Federal Law on Accounting;

5) provide documents required to calculate and pay taxes to the tax authorities and their officials in cases provided for by this Code;

6) comply with lawful demands of the tax authority to eliminate revealed violations of tax and fee legislation, and also not to hinder the lawful activity of tax officials when they discharge their official duties;

7) provide to the tax authority the necessary information and documents in cases and in accordance with the procedure provided by this Code;

8) ensure safety, in the course of four years, of bookkeeping data and other documents required for the calculation and payment of taxes and fees, and of documents confirming income earned (for organisations, also expenses incurred) and paid (withheld) taxes;

9) fulfill other obligations provided by tax and fee legislation.

2. Taxpayer organisations and individual entrepreneurs, apart from obligations set forth in Item 1 of this Article, shall be required to inform in writing the tax authority at the place of registration of the following:

opening or closure of accounts - within ten days;

all instances of holding an interest in Russian and foreign organisations - not later than within one month of commencement of such an interest;

all separate divisions set up within the Russian Federation - not later than within one month of their establishment, reorganisation or liquidation;

declaring them insolvent (bankrupt), liquidation or reorganisation - not later than within three days of adopting such a decision;

changes in their location or the place of residence - not later than 10 days since the time of such change.

3. Payers of fees shall be obligated to pay the legally established fees, and also meet other obligations as established by the legislation relevant to taxes and fees.

4. For failure to fulfill or improper fulfillment of obligations imposed on him, the taxpayer (payer of fees) shall be liable under the legislation of the Russian Federation.

5. In connection with the shifting of goods across the customs border of the Russian Federation the taxpayers or the payers of dues who pay their taxes and dues shall also bear the duties provided for by the customs legislation of the Russian Federation.

Article 24. Tax Agents

1. Tax agents shall be defined as persons who are required under this Code to calculate, withhold from the taxpayer and remit taxes to the corresponding budget (off-budget fund).

2. Tax agents shall have the same rights as taxpayers unless otherwise provided by this Code.

3. Tax agents shall be required to:

1) calculate, withhold from resources paid to taxpayers and remit to the budgets (off-budget funds) correctly and on time the corresponding taxes;

2) within one month notify the tax authority, in writing, of the impossibility to withhold tax from the taxpayer and inform the tax authority at the place of their registration of the amount of arrears;

3) keep records of income paid to taxpayers and taxes withheld and remitted to the budgets (off-budget funds), including separate records for each taxpayer personally;

4) provide to the tax authority at the place of registration documents required to control the correctness of calculation, withholding and remittance of taxes.

4. The tax agents shall transfer the collected taxes in the order prescribed by this Code for the payment of the tax by a taxpayer";

5. For failure to fulfill or improper fulfillment of obligations imposed on him, the tax agent shall incur liability under the legislation of the Russian Federation.

Article 25. Collectors of Taxes and/or Fees

In cases provided by this Code, funds in payment of taxes and/or fees shall be received from taxpayers and/or payers of fees and remitted to the budget by government authorities, local self-government bodies or other authorized agencies and officials, i.e. collectors of taxes and/or fees.

The rights, duties and liability of collectors of taxes and/or fees shall be determined by this Code, federal laws and legislative acts of Russian Federation member territories and regulatory legal acts of representative local self-government bodies on taxes and/or fees adopted in accordance therewith.