Efforts to pass the final part of the Russian tax code could be hit by a protracted budget debate when the Duma reconvenes after its summer break. Part two of the code deals with specific federal, regional and local taxes. The Russian government hopes that it will be passed and enter into force at the start of next year. But the autumn session of the Duma is likely to be dominated by discussions over the federal budget (see International Updates, for further coverage of recent changes to the Russian tax system). Part one of the code has already been passed and will enter into force in January 1999. It deals with structural issues such as taxpayers' rights, the powers of judges in tax litigation and the burden of proof of guilt for the tax authorities. But the content of the final version differs significantly from the first draft submitted to the Duma in 1996. About half of the original was deleted and proposals relating to tax accounting, consolidated taxpayer groups and procedural items were lost.
August 31 1998