ARTICLE · 08 JANUARY 1997
Pension Fund/ Late Payment Interest Over Old Debts
RussiaAccounting and Audit
(Tax News Reporter - Week Ended 7 January 1997)
The President has issued a Decree allowing the Pension Fund to recalculate the amount of unpaid late payment interest for taxpayers which have no current debts (i.e. all contributions due to the fund as at 1 January 1997 have been paid). The recalculated amount of penalties may be based on the CBR rate in force on the date of payment of the debts. This appears to allow the Pension Fund to retroactively decrease the late payment interest rate, and is certainly an improvement for interest which arose before 10 July 1996, for which a rate of 1% per day was in force. After 10 July 1996, the rate changed to 1/300 of the CBR refinancing rate. In principle, payment defaulters may apply for the interest to be amended to 1/365 of the CBR rate per day of late payment.
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