The evaluation results will be published in a public reliability rating accessible to any interested party. This development presents new challenges for businesses in managing their digital profiles and reputations effectively.
The initiative by the Federal Tax Service (FTS) aims to increase transparency in the business environment and reduce risks when choosing counterparties. However, the automated assessments, which may not always account for industry specifics or temporary company difficulties, could pose reputational and operational risks even for diligent taxpayers.
How the system will operate:
Under the new law, the FTS will generate ratings based on analyzed data from accounting records, tax reports, and other relevant information. This formalizes the existing experimental service "How the Tax Authorities See Me."
Right to request and dispute: Any individual or legal entity will be able to request a company’s or entrepreneur’s rating report. The rated party will have the right to contest the rating by submitting a correction request along with supporting documents to the FTS. The tax authority will make its decision within five days.
Third-party request mechanism: If a request comes from a potential partner or bank, the FTS will notify the company beforehand. If no objections are raised within five days, the report will be released. If disputed, the timeline to provide information to third parties may be extended up to 10 business days.
Key evaluation criteria:
The methodology will be based on the current FTS order, expanded by additional indicators, divided into two groups:
Objective (factual) criteria:
Analytical criteria (assessed by FTS):
A significant addition will be the consideration of companies listed on the "blacklist" of employers who allow illegal employment.
Risks and implications for business:
The primary change is that the FTS’s internal assessments will become publicly available, creating new challenges for businesses:
The system is not perfect and may not reflect the uniqueness of every business. Startups, reorganizing entities, or those in low-margin sectors might be particularly vulnerable.
The initiative by the Federal Tax Service (FTS) aims to increase transparency in the business environment and reduce risks when choosing counterparties. However, the automated assessments, which may not always account for industry specifics or temporary company difficulties, could pose reputational and operational risks even for diligent taxpayers.
How the system will operate:
Under the new law, the FTS will generate ratings based on analyzed data from accounting records, tax reports, and other relevant information. This formalizes the existing experimental service "How the Tax Authorities See Me."
Right to request and dispute: Any individual or legal entity will be able to request a company’s or entrepreneur’s rating report. The rated party will have the right to contest the rating by submitting a correction request along with supporting documents to the FTS. The tax authority will make its decision within five days.
Third-party request mechanism: If a request comes from a potential partner or bank, the FTS will notify the company beforehand. If no objections are raised within five days, the report will be released. If disputed, the timeline to provide information to third parties may be extended up to 10 business days.
Key evaluation criteria:
The methodology will be based on the current FTS order, expanded by additional indicators, divided into two groups:
Objective (factual) criteria:
- No outstanding tax liabilities
- No records of corruption-related offenses
- Absence from the Register of Unfair Suppliers
- No false information in the Unified State Register of Legal Entities
- No ongoing bankruptcy procedures
Analytical criteria (assessed by FTS):
- Tax burden level relative to regional averages
- Share of VAT deductions within "safe" thresholds
- Profitability and financial stability ratios
- Average monthly salary per employee above the minimum wage and regional average
- Consistency in submitted reports
A significant addition will be the consideration of companies listed on the "blacklist" of employers who allow illegal employment.
Risks and implications for business:
The primary change is that the FTS’s internal assessments will become publicly available, creating new challenges for businesses:
- Reputational risks: A low rating, even due to technical errors or temporary setbacks, can damage a company’s reputation and deter partners, investors, or lenders.
- Loss of competitive advantage: The public rating will be a key factor in tenders, credit approvals, and major contract negotiations.
- Need for ongoing monitoring and protection: Companies will need to regularly track their FTS rating and be prepared to respond promptly to any unjustified downgrades to minimize negative impacts.
The system is not perfect and may not reflect the uniqueness of every business. Startups, reorganizing entities, or those in low-margin sectors might be particularly vulnerable.
The public availability of the reliability rating marks a new phase in interactions with the FTS, where timely and accurate reporting alone will no longer suffice. A proactive approach to managing your digital footprint with tax authorities, alongside readiness for swift legal response, will now be essential.
The Acsour team offers expertise in tax law and business protection. We are prepared to assist in monitoring your rating, analyzing downgrade risks, preparing preventive actions, and providing comprehensive support in disputing ratings with the FTS to safeguard your business reputation and interests.
This material is based on publicly available information and does not constitute legal advice. Please consult professionals for recommendations tailored to your specific situation.
