According to the Federal Tax Service, the signs of such misrepresentation are the following:
- creation of a "business fragmentation" scheme aimed at the illegal use of special tax modes;
- performing actions aimed at artificial creation of conditions for the use of reduced tax rates, tax benefits, and tax exemptions;
- creation of a scheme aimed at the illegal application of the norms of international agreements on the avoidance of double taxation;
- unreality of the transaction by the parties (absence of the fact of its commission).
In accordance with article 110 of the Tax Code of the Russian Federation, a tax offense is recognized as committed intentionally if the legal entity which committed it was aware of the illegal nature of its actions (inactions), wished or deliberately allowed the harmful consequences of such actions (inactions).