Tax Authority Forcibly Withdraws Funds from Russian-Chechen Friendship Society AccountOn 26 August 2005, Nizhegorodsky regional tax authority (a city of Nizhny Novgorod branch of Russia’s Federal Tax Inspectorate (FTE) began forcefully withdrawing funds from operational bank accounts of the Russian-Chechen Friendship Society (RCFS). The action resulted from the tax authority’s decision pursuant to Article 46 of the Tax Code of the Russian Federation - to fine the human rights organisation for an alleged failure to pay tax on the international grants they had received from foreign donors. The total sum to be written off their accounts is 844 227 roubles.
This was done even though the tax authority’s decision of 15 August 2005 to subject the organisation to fine had been duly appealed against in the Nizhegorodsky Region Arbitration Court. Simultaneously, the human rights organisation had asked to stop any further court procedures until the appeal was heard. The Court was supposed to regulate on this matter next week. The tax authority used the time gap to deprive the human rights defenders of all financial resources.
In the words of Stanislav Dmitrievsky, RCFS Executive Director, this action was conducted in severe breach of the existing legislation. For the first time in the history of the Russian Federation, it creates a precedent whereby profits from operational grants to a non-governmental body were subjected to state taxation. This targeted and discriminatory action is aimed at paralising the legitimate activities of a registered non-governmental organisation that has become an inconvenience for Russia’s authorities. If we do not stop the law-breaking bureaucrats straight away, there will be further victims. Everyone must realise that the whole of the country’s non-governmental sector is now under severe threat.
(The text was not edited by Prague Watchdog).
Source: Russian-Chechen Information Agency
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