The Russian Cultural and Information Center in Sofia has failed to pay corporate taxes or file annual declarations despite running paid commercial events, according to findings from the National Revenue Agency. Bulgarian authorities have stalled an ongoing tax audit after the Russian embassy has not returned a signed receipt following the delivery of a verbal note by the Foreign Ministry.
Investigation Uncovers Unpaid Taxes at ul. Shipka
The case began in the spring of 2025. Former lawmaker Stela Nikolova alerted the executive branch that paid events, including tea parties and school and kindergarten celebrations, were organized inside the prominent building at ul. Shipka in central Sofia. Nikolova stated that revenues from these gatherings were masked as joint activities and left untaxed.
Following a lengthy review, the National Revenue Agency confirmed that the Russian cultural center profits from property management and conducts taxable business operations. Officials at the revenue agency noted that the center functions as a representative office of the Russian Federation with the status of a foreign legal entity. However, this status does not exempt it from filing annual declarations under the Corporate Income Taxation Act and paying corresponding taxes on generated profits.
Diplomatic Delivery Stalemate Halts Audit Proceedings
Former revenue agency director Milena Krastanova announced in April that the check concluded in March. An official order was issued to audit the center for a five-year period covering January 1, 2021, through December 31, 2025. In June, the cabinet “Radew” appointed Boris Mikhailov as the new director of the National Revenue Agency. Mikhailov reported that the audit had failed to launch because authorities could not deliver the audit order to the target.
Foreign Minister Velislava Petrova clarified the diplomatic deadlock in a written response to Stela Nikolova. The ministry transmitted the audit order through official diplomatic channels to the Embassy of the Russian Federation in Sofia via verbal note No. 12-11-10 on July 9, 2026. The ministry requested a signed copy of the attached receipt, but no response has arrived from Ambassador Eleonora Mitrofanova.
Did You Know? The Russian Cultural and Information Center occupies a large building in the top center of Sofia, but operates as a registered legal entity with a headquarters in the capital rather than an exempt diplomatic enclave.
Legal Framework Governing Audit Delivery Failures
Under the Bulgarian Tax-Insurance Procedure Code, the refusal or failure to receive an audit assignment order does not halt its legal effect. The code establishes that an unaccepted delivery does not release a subject from statutory obligations. Tax inspectors may involve at least one independent witness to confirm a delivery refusal with a signature. Alternatively, inspectors can make two visits to the address, draft protocols, post a written notice at the revenue agency building, and publish the notice in the official agency bulletin to establish formal service.
Furthermore, tax assignment orders do not allow for immediate appeals. Legal challenges can only reach the court system after the completion of the audit alongside the final revision act.
Frequently Asked Questions
What triggered the investigation into the Russian Cultural and Information Center?
Former lawmaker Stela Nikolova alerted the executive branch in the spring of 2025 about paid events organized inside the building on ul.
What did the revenue agency’s check discover?
The National Revenue Agency confirmed that the center generates profit from property management and business activities without filing annual tax declarations or paying corporate taxes.
Why has the scheduled audit not started yet?
The audit order could not be delivered to the target, and the Russian embassy in Sofia has not returned a signed receipt following the delivery of a verbal note by the Foreign Ministry.
What administrative steps should the National Revenue Agency take next to overcome the delivery deadlock?