These clarifications were needed because in practice the question arose about limits of the moratorium on inspections in 2021.

THE HEART OF THE MATTER. WILL THEY CHECK OR NOT?

In accordance with RF Government Resolutions No. 438 of 03.04.2020 and No. 1969 of 30.11.2020, restrictions were introduced on inspections in relation to certain categories of businesses. In particular, the burden of inspections was eased for small and medium-sized businesses in 2020 and 2021. It was possible to check activities of such enterprises only in cases specified in the resolutions of the RF Government.

But in practice the question arose about the scope of restrictions on inspections. Thus, in accordance with clause 1, Part 1, Article 17 of Federal Law No. 98-FZ of April 1, 2020, the RF Government was empowered to make decisions on the supervision and inspections procedure in respect of business only in the part provided by Federal Law No. 294-FZ of December 26, 2008 "On Protection of Rights of Legal Entities and Individual Entrepreneurs in the exercise of State Control (Supervision) and Municipal Control". But there are a number of areas that do not fall under Law 294-FZ, such as customs control, financial and budgetary supervision, banking and insurance supervision. At the same time Government Decree No. 438 also provided for a moratorium on inspections of small and medium businesses, not covered by 294-FZ. Therefore, a question arose if it is permissible not to conduct inspections in the customs, financial-budgetary, banking, insurance and other spheres.

POSITION OF RF PROSECUTOR GENERAL'S OFFICE

Quite expectedly, the main supervisory authority of the country in its clarification preferred to follow the letter of the law. In Letter dated 16.03.2021 No. 76/2-573-2018 of the General Prosecutor's Office of Russia "On application of the Government Decree of November 30, 2020 No. 1969", signed by the Head of the Department for supervising the legality of inspections of businesses, the General Prosecutor's Office said that the moratorium on inspections applies only to those control and oversight activities that are provided by 294-FZ. Thus, the broad interpretation of the law made by the Russian Federation Government is recognized as incorrect. The prohibition on inspections applies only to those spheres of control and oversight that are established in the 294-FZ. This means that in 2021 inspections, for example, in tax, customs, currency and other spheres will be carried out according to the general procedure.

RECOMMENDATIONS FOR BUSINESS

It should be noted that the action of Law 294-FZ contains quite a few exceptions. They are stipulated in part 3 and 3.1. Art. 1 of this law. These norms list those spheres in relation to which the preferences established by the above law do not apply. The list is quite long. Therefore entrepreneurs should carefully study the legislation or consult with a lawyer when planning their activities and work with supervisory bodies in 2021. This will make it possible to reliably establish when a company can count on exemption from inspections and when it cannot. 

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