Tax consequences of invalid transaction

This article explores the impact of the civil law institution of the invalidity of a transaction on its tax consequences. It has been established that for tax purposes, tax rather than sectoral legislation is of primary importance due to the principle of autonomy of tax law. The presence of civil-law defects in a transaction does not affect its taxation, if performance has taken place. And vice versa, the lack of real fulfillment of the obligation, as a result, its non-accounting for tax purposes, does not entail automatic consequences in the civil law field. The author also comes to the conclusion that the mechanism for evaluating a transaction for the presence of signs of imaginariness and pretense is similar in nature to determining the economic nature of a transaction to establish tax consequences.