Commentary to Decree No. 14 of 19 January 2016

    The efforts to eliminate pseudo-entrepreneurship organizations will become more efficient in Belarus. This is envisaged in decree No. 14 “Concerning additional measures to prevent the illegal minimization of tax bills” signed by Belarus President Aleksandr Lukashenko on 19 January.

    The decree provides for the measures relying on the legal and transparent regulations. The document introduces amendments to decree No. 488 of 23 October 2012 “Concerning a number of measures to prevent the illegal minimization of tax bills”. For example, the decree envisages that business entities will impose tax liabilities on the economic operations with pseudo-entrepreneurship organizations upon the instruction of the financial investigation body of the State Control Committee. With that, the instruction should specify primary accounting records of economic operations with pseudo-entrepreneurs.

    In accordance with decree No.14, having fulfilled all instructions and willingly paid taxes, economic operators will be exempt from administrative liabilities.

    The decree also provides for the measures to protect the rights and legal interests of business entities. This pertains to the possibility to challenge, including in court, the automatic annulment decision in relation of a pseudo-entrepreneurship organization’s counteragent in case there are any objections.

    The document also introduces amendments to decree No. 510 of 16 October 2009 “Concerning the improvement of audit activities in the Republic of Belarus” to ensure the comprehensive legal regulation. This pertains to the unscheduled audits of economic entities and their counteragents included in the register. After the inclusion in the register these entities will be part of a group of high risk for scheduled checks.

    Decree No. 14 enters into force in three months after its official publication.