The constitutional court has allowed Russia to repay former shareholders of Yukos € 1.8 billion – Финам.RU

the constitutional court of the Russian Federation allowed Russia to repay former shareholders of Yukos € 1.8 billion compensation awarded to them by the ECHR. The court came to the conclusion that the decision of the ECHR in the case “Yukos” man of 31 July 2014 was contrary to the norms of the Russian Constitution, however, did not rule out measures to protect the interests of the shareholders affected by the wrongful actions of management of the company.

the consideration of the request of the Ministry of justice of the Russian Federation about the possibility of the execution of judgments of the ECHR was held on 15 December 2016. The CC decision was read by the Chairman of the court Valery Zorkin.

Decisions of the ECHR do not cancel for the Russian legal system the priority of the Constitution of the Russian Federation. Therefore, when by the decision of interstate body, when interpreting the rules of the international Treaty, improperly affected the fundamental principles and norms of the Constitution, Russia is exceptionally entitled to withdraw from execution of this decision, the court ruled.

the ECHR came to the conclusion about the wrong collecting from YUKOS of fines and amounts of compensation, as there had been a retroactive application of the law – article 113 of the Tax code of the Russian Federation on three-year limitation period of bringing to responsibility in the interpretation given by the Constitutional Court in its decision of 14 July 2005.

In this decision, the constitutional court has allowed the courts to collect debts from taxpayers if they used a provision of the Statute of limitations contrary to its purpose, to the detriment of the rights of other taxpayers and legitimate public interest and let the tax control. Without derogating rules on the timing of the application of sanctions in connection with the tax evasion, the COP has identified the only possible terms of the Constitution, their meaning for use against tax evaders. In this interpretation, no conflict with the constitutional prohibition of the retroactive effect of the law.

the constitutional Court notes that the activities of the company “YUKOS” as a willful defaulter of taxes, taking into account its occupied place in the economy of the country, had prvorazredni effect. The company used a sophisticated scheme to evade taxes and after the elimination has left a debt outstanding in the amount of 227 billion rubles. The presence in the activities of Yukos, the large-scale schemes of tax evasion denied the ECHR. In this context, the payment to the shareholders of the company an unprecedented amount of the budget system, which was not given huge tax payments required for fulfilment of public obligations to the citizens of Russia, contradicts the constitutional principles of equality and justice.

Evasion of OJSC “Oil company YUKOS” from payment of taxes in such an unprecedented way directly threatened the principles of legal democratic social state, which obliges authorities to act in enforcement proceedings as efficiently as possible in order to counteract unfair to taxpayers could be overcome. This is predefined that the courts found no grounds for determining the amount of performance fee with in the Russian legal system the nature of a penalty, in the amount of less than 7% of the total amount of tax liabilities.

on this Basis, the constitutional Court declared it impossible to execute the decision of the ECHR in accordance with the Constitution. However, Russia on the basis of goodwill have the right to make certain payments to the former shareholders of the company affected by the misconduct of its management, due to the newly identified property of “Yukos”, and summarized in the court’s decision.

the Decision of the constitutional court comes into force immediately after the announcement and cannot be appealed.