The Ministry of Justice has asserted that a tax on excess earnings accumulated in prior years runs counter to the Constitution of the Russian Federation. Reports from Vedomosti reference a package of documents that were signed following a meeting of the legal commission on legislative activities, signaling formal dissent within the ministry on the legal basis of the proposal.
Officials with the ministry explain that the tax base for the enterprise in question comprises profits recorded in earlier periods. In their view, this interpretation effectively grants a retrospective effect to the regulations governing such legal relationships, undermining the principle that tax rules should apply prospectively and not retroactively. The assertion aligns with constitutional safeguards against retroactive taxation and illustrates a broader tension between fiscal policy tools and constitutional guarantees.
Consequently, the proposed measure appears to violate Article 57 of the Russian Constitution, which states that laws introducing new taxes or worsening the taxpayers’ situation cannot have retroactive effect. The ministry’s position reflects a concern that applying past-year profits to a current tax regime would impose obligations that were not anticipated at the time those profits were earned, creating legal and financial uncertainty for businesses and individuals alike.
Earlier, the Ministry of Finance presented a reform package labeled Adjust for the single tax payment system, drawing on grievances voiced by various regional administrations across Russia. Regional authorities have contended that shifting to the unified tax regime and the Single Tax on Imputed Net Income (UNS/UNT) creates cash flow gaps. The concerns point to practical challenges in revenue administration, timing of tax receipts, and the administrative burden placed on regional budgets during the transition. The discussion underscores how tax policy reforms interact with regional fiscal autonomy and the operational realities faced by businesses during nationwide reform efforts.