The changes effectively give the tax authorities a new control tool which is not regulated by the Tax Code. The tax authorities will have automatic access to all information entered in the URIA and, according to guidance from Roskomnadzor (the Federal Communications Supervision Service), will not be obliged to inform taxpayers that they have accessed that information.
Firstly, a tax authority might collate information provided by the taxpayer and information contained in the URIA and use its findings, for example, to disallow advertising expenses and VAT deductions on the basis of Article 54.1 of the Tax Code.
Secondly, there is uncertainty over whether the tax authorities could disallow expenses for advertising that was distributed not in compliance with the new regulations, i.e., without an identifier (token) being assigned and without relevant information being transmitted to the URIA. On the one hand, we are aware of case law indicating that breaches of industry legislation do not affect the tax deductibility of expenses. On the other hand, the absence of information in the URIA about the distribution of particular advertising could be used by the tax authorities as an argument to assert that a transaction did not actually take place.