Update on legislative developments in Russia: governmental de-offshoring initiatives and proposed new CFC and tax residency rules
When it was first revealed by president Vladimir Putin a few years ago that the offshore-backed modus operandi for the Russian economy could no longer be tolerated, very few could have predicted that the government would be making a serious legislative effort to fight the offshore structures that had essentially crippled all industry sectors in Russia, both public and private.
Why does Russia need it? In his message to the Federation Council delivered on 12 December 2012, president Putin had particularly focused on the need for de-offshorisation: ‘Our entrepreneurs are often reproached for being unpatriotic. The offshore nature of Russia’s economy has become a household word. Experts call this escaping the jurisdiction. According to some estimations, nine out of every 10 major deals by large Russian companies, including the state-owned ones, are not subject to national laws. We need a whole system of measures for the de-offshorisation of our economy. I order the government to submit appropriate comprehensive proposals on the subject.’
In his next 2013 annual speech at the Federation Council, president Putin had followed up by saying: ‘Last year in my address, I talked about the goals underlying the de-offshorisation of the economy…
Click on the link below to read the rest of the DLA Piper briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Australian Taxation Office released a draft ruling on the Goods and Services Tax treatment of bitcoin transactions on 20 August 2014.
DLA Piper’s ‘Life sciences: patent extension strategies and antitrust global update’ video covers global antitrust and competition issues including product hopping and reverse payment patents.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.