OREANDA-NEWS. June 09, 2008. The Federal Antimonopoly Service (FAS Russia) instructed its regional offices to propose abolishing the acts of the authorities on granting tax privileges through the courts should they discover that such acts violate the Federal Law "On Protection of Competition", reported the press-centre of FAS Russia. 

Thus, FAS Russia has started a new type of work by controlling whether the authorities the Federal Law "On Protection of Competition" in granting tax privileges to economic entities. It is an integral part of a special block of work of the antimonopoly bodies "Control of the Authorities".

Based on the analysis of the documents presented by its regional offices, FAS Russia discovered some legal acts on granting individual tax privileges (which is directly forbidden by Part 1 Article 56 of the Tax Code of the Russian Federation); such acts violated Part 1 Article 15 of the Federal Law "On Protection of Competition".

From the economic prospective, tax privileges give advantages to individual economic entities, therefore they must be justified by the authorities that must not violate the current legislation and restrict competition.