New Head Of Russian Tax Service 'Not A Security Official,' Says Kudrin

by Tatiana Smolenskaya, Tax-News.com, Moscow

27 February 2007

Mikhail Mokretsov, former deputy chief of the federal tax service, has been appointed to head the tax collection department following a cabinet reshuffle by President Vladimir Putin.

Mokretsov, deputy chief of the tax service for the last three years, replaces its former head Anatoly Serdyukov, who has been chosen by Putin to stamp his authority on the defence ministry.

Introducing Mokretsov to the press last week, Finance Minister Alexei Kudrin stated that the new tax service chief is "not a security official" and described him as "a competent administrator", raising the possibility of a less heavy-handed approach to tax compliance by the tax service.

"(Mokretsov) is an intelligent, attentive person, with professional knowledge of the tax sector,” announced Kudrin.

The actions of the tax service under Serdyukov have tended to dent business confidence in Russia over the last three years, with several major companies becoming the target of ongoing tax investigations, the most notable of which involved the now bankrupt oil firm Yukos. Other companies in the energy sector, including BP-TNK, the joint Russo-British venture, have also fallen foul of the tax inspectorate, as have firms in other sectors such as Vimpelcom, Russia's second-largest mobile telecommunications company.

Prior to his new role, Mokretsov had supervised several departments, including income and indirect tax administration, an analysis and planning department, and the Siberian regional tax authority.

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