Duma discusses amendments on Gazprom profit tax distribution between regions
MOSCOW. March 6 (Interfax) - State Duma deputies may adopt amendments to the Russian Tax Code, which introduce special procedures for distributing Gazprom profit tax between regions after the formation of a consolidated group of taxpayers.
The amendments are proposed by deputy Nikolai Gonchar and were discussed Tuesday at a meeting of a subcommittee of the State Duma budget and tax committee.
Laws on transfer prices and the consolidated taxpayer were adopted in 2011. One aim of this was to ensure fair distribution of tax revenue among the regions. For example, the share of profit tax paid to the regional budget from a company within the group of taxpayers should be paid into the budget of the region where the company is operating.
Leonid Simanovsky said at the subcommittee meeting that after Gazprom becomes a consolidated group of taxpayers there will be 12 regions that lose their profit tax revenue, including Moscow and St. Petersburg. That money will be distributed among other regions, the deputy said.
Gonchar, the author of the amendments, said the law on consolidated taxpayers was adopted at the end of 2011 when regional budgets were already established and the revenue shortfall after the consolidation was not taken into account.
Moscow authorities were unable to take into account this shortfall in its budget, Elena Medvedeva, the deputy head of the Moscow government's economic policy and development department, said. Three organizations, including Gazprom, announced the formation of a consolidated group of taxpayers, she added. "We asked the Russian leadership to make amendments and review the transition period in order for the city budget to lose only a certain sum over four years," she said.
The amendments envisage partial withdrawal not just for the Moscow budget but also for other regions that will face a shortfall. In particular, tax revenue will be diverted from the budgets of these regions at a ratio of 0.2 in 2012, 0.4 in 2013, 0.6 in 2014 and 0.8 in 2015.
Medvedeva added that according to the proposed ratio, the Moscow budget would lose 11 billion rubles not 50 billion rubles in 2012.
For Gazprom the amendments mean rather complex, difficult to implement and costly tax payment procedures, said the deputy head of Gazprom's tax department, Nadia Ziatdinova. "Upon the formation of a consolidated group fairer distribution of taxes is achieved so the taxes go to the regions where the main production capacity is concentrated," she said. Introducing amended ratios for Gazprom will lead "us to move away from the ideology of the law on a consolidated taxpayer," she said.
Over 50 companies form part of the Gazprom consolidated group of taxpayers. "This includes over 4,000 separate units in more than 70 regions," she added. Taxes for all these companies will have to be calculated on Gazprom's behalf and introducing additional coefficients will make the task even harder, she added.
Deputies have not yet voted on the amendments and will consider them again at a subcommittee meeting on March 12. They agreed that Gazprom should submit its calculations on how profit tax will be distributed between the regions after a consolidated taxpayer is established with and without the amendments.