Special subjects of tax law: de jure et de facto

Abstract

This article presents an analysis of the legal status of special tax law entities and classifies them based on the legalization criteria in the Russian Tax Code. Particular attention is paid to so-called "illegal" (de facto) entities in tax legal relations, whose status is not defined by law but is recognized by the law enforcement practices of courts and official government agencies (the Russian Ministry of Finance, the Federal Tax Service, etc.). These entities include "technical" companies, conduit companies, shell companies, controlled entities, and the actual executor of a transaction (the actual counterparty). Based on an analysis of judicial and arbitration practice and the law enforcement practices of tax authorities, the characteristics of these special entities are summarized. Proposals for improving tax legislation and its application are substantiated in terms of entity differentiation.