Anton Kabakov told pravo.ru about the mistakes and problems of business splitting

Pravo.ru published an article on business splitting on June 22 after having invited Anton Kabakov, partner at Forte Tax & Law, to comment on this topic.

Anton noted that business splitting had been under greater scrutiny as tax authorities tend to associate the breakdown of businesses into several legal entities with tax burden minimization.

“If a company is artificially split, i.e. when a business is split to reduce its tax burden rather than for business purposes, then this definitely gives rise to a risk [of scrutiny from tax authorities]. But if there is a clear business goal, then risks are minimal,” noted Anton.

To read pravo.ru article, please click on the link

Not so long ago, Anton made a comprehensive presentation on the topic of business splitting: Business splitting – A Fine Line Between Tax Optimization and Tax Evasion. To read the presentation, please click on the link