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Dear Readers, in the new edition of our newsletters, we have compiled an overview of recent changes in the field of labor, administrative and tax law.
If you have more questions don't hesitate to contact the experts of our company.

An employment relation shall be documented by signing an employment agreement, while the employer, as the stronger party, is obliged to provide for timely and conforming-to-law preparation of the said document, which is one of the most strong evidences of an employment.

However, it is not a rare case that employers gravely violate the provisions of the Labor Code of Russia with the aim to get illegal tax and other benefits. The violation might be, for example, by way of concluding a labor or service contract with a contractor covering the existing employment relation or, even, using a labor force without signing any contract at all.

As to whether the range of admissible evidence which an employee may bring forward in the court is confined, the Supreme Court of Russia gives a clarification, in parallel with handling a more specific scope of the Decree of the Plenum of the Supreme Court of Russia dd. 29.05.2018 N 15 (paragraph 18). According to the above, the admissible evidence include, but is not limited to:

- Pass cards allowing to enter in the premises of the employer;
- Shift schedule, leave schedule, other documents pertaining to the
eemployment relation;
- Emails;
- Labor safety documents;
- Audio and video data,
- Witnesses.

The conclusions of the plenum of Supreme Court of Russia are important, in particular, for the cases in which a labor or service contract was entered into with an individual who in fact performs an employment function within the meaning of relevant provisions of Labor Code of Russia. For more information on the risks connected with entering a contractor relation instead of the due employment, please, go to our special newsletter-release dedicated to employment relation issues.

The Ministry of finance sharpened its stance towards the income taxation and insurance premiums as relative to the gratuitously provided meals for employees in the open buffet mode. In its Letter dd. 17.05.2018 N 03-04-06/33350 it took the standpoint that in each particular case the employer is obliged to take all reasonable steps in order to evaluate and disclose the benefits received by the employees and that, consequently, the "open buffet" mode of providing gratuitous meals does not of itself prove the impossibility to evaluate and disclose the said benefits of the employees.

As one of the alternatives, the ministry has recommended to distribute equally the costs of the meal among the employees participating in it, in case of, for example, a single-time event, but it is clear that such an approach may violate the rights of taxpayers.

In the Russian media there were announcements about the tax authorities being empowered to freely collect information from banks about the fund movements on the clients` accounts. With the help of this information the tax authorities can get a grip on operations within the grey economy and assess additional tax as well as fines. But in the meanwhile the Federal Tax Authority published a post on its website in which it clarified that the tax authorities may demand from the banks the information on the fund movements on the accounts and deposits, the balances, the transfers of electronic funds, as before, under certain circumstances only (for example, on the grounds of a tax audit conducted by the tax authority).

We further note, that beginning from 01.06.2018 the relevant provisions of law extend to the accounts and deposits in precious metals.

Source: Information of Federal Tax Authority <On the request of tax authorities for information about incoming funds on a card account of taxpayer>

The provisions of the Federal Statute dd. 18.07.2006 N 109-FZ "On migration registration of foreign nationals and stateless persons in Russia" as to the registration of foreigners at the place of their residence (stay) have been altered. According to the new rules the application for registration shall be filed by the company, in which the foreigner works or performs other allowed activity, only in case the foreigner actually resides (lives) in the premises of the company at the address, that is he or she regularly uses the said premises for sleeping and resting. If the foreigner lives in another location, for example a rented flat, then the lessor will have to register him as at that place.

The new wording of the statute also clarified, that the used-as-residence premises at the company`s address need not have a specifically detailed address (containing on an obligatory basis the reference to the ancillary numbering of a construction or a building). Moreover, the used-as-residence premises may be of temporary nature: for example, a part of office temporarily provided with necessary furniture.

Source: Federal Statute dd. 27.06.2018 N 163-ФЗ "On the amendments made to the Federal Statute "On migration registration of foreign nationals and stateless persons in Russia"

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