The number of clauses dealing with tax in Russian contracts is increasing rapidly. According to experts, this is a positive trend: the tool gives protection against sudden additional tax charges caused by an unscrupulous counterparty.
Oleg Rifert, Senior Counsel in the Dispute Resolution Practice, and Anton Borisyuk, a Senior Associate in the Transactions & Corporate Law Practice at Nordic Star observed the reasons for the widespread use of a tax clause by companies today as well as the correct ways to apply it.