Russia intensifies tax audits on major companies to cover budget deficit

Russia is intensifying tax audits on major corporations to address a widening federal budget deficit. Between January and June 2026, the Federal Tax Service doubled the number of on-site inspections for large taxpayers—those with annual revenues exceeding 35 billion rubles—compared to the previous year.

These intensified enforcement actions have resulted in 16.3 billion rubles in additional taxes, penalties, and fines, nearly triple the amount recorded during the same period last year. Legal experts note that the scale of tax claims is rising, with many cases exceeding 500 million rubles and some surpassing 1 billion rubles. Judicial statistics indicate that 85% of tax litigation cases are resolved in favor of the state.

The crackdown comes as the federal budget deficit reached 5.8 trillion rubles in the first eight months of the year, significantly exceeding planned levels. This deficit is driven by rapidly increasing expenditures, largely due to unplanned state contracts and advances, likely related to defense procurement. Simultaneously, revenues from the oil and gas sector fell by 16.7% compared to the previous year, impacted by lower average exchange rates and fluctuations in oil prices.