“As notes Mrs. Ekaterina Boldinova, a partner of Five Stones Consulting, in consideration of the case the court has reviewed in details the circumstances of involvement by JSC “Uralstransmach” of the contractors for performance of R&D work and the ways of applying of VAT benefits provided for by Sub-Clauses 16 and 16.1 of Clause 3 of Art. 149 of Russian Tax Code. The approach of the court to the opportunity of receiving of VAT deduction for R&D works financed from the budget funds is based on an available court practice and explanations given by the Federal Tax Service and the Ministry of Finance. The deepness of court’s review of the question in case hardly leaves to the tax inspectorate any chance for cancellation of the court decision by the upper instances courts.”
