The Supreme Arbitration Court of Russia has permitted the settling of tax disputes by the conclusion of amicable agreements with tax authorities. Amicable agreements cannot change tax implications stipulated in the law. For instance, an amicable agreement may not include clauses that would reduce the applicable tax rate, change the rules for calculating interest on late payments, or release a taxpayer from tax liability for certain tax periods or activities.
However, a tax authority may use the amicable agreement to conclude that a fine should be reduced due to mitigating circumstances, to approve the justification and documentation of expenses claimed by the taxpayer, and to approve the tax optimization scheme a taxpayer has applied. Further, the amicable agreement may resolve issues that not related directly to the court case, such as issues related to a tax period prior to the one being considered in the tax authority's decision.
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