Tax reform 2025 - Amnesty for business fragmentation
First of all, it is necessary to clarify what business fragmentation is.
Until July 12, 2024, the Tax Code did not contain the concept of “business fragmentation”, although the concept was actively used in business by tax authorities and in legal disputes, but there was no uniform terminology enshrined in legislation.
Judicial practice was based on the evidence base of taxpayers, the arguments of tax authorities and the persuasiveness of lawyers defending their clients.
Tax authorities, when determining offenses related to business fragmentation, relied on criteria that had developed in law enforcement practice. Given the wide variability of legal structures and the specifics of conducting individual types of activities, the criteria are varied and quite numerous.
The concept of "business fragmentation" first appeared with the adoption of Federal Law No. 176-FZ of July 12, 2024. Here I would like to make a reservation right away: in the law the definition of "business fragmentation" is narrowly focused, as it is intended for the application of tax amnesty and for certain categories of persons who used fragmentation. The signs of fragmentation in this norm are formulated in a general way.
