Russian Government will make lives of trust owners complicated

Russian authorities are deliberately developing measures to resist businessmen’s malpractice of hiding capitals abroad using diverse methods. These measures are to enhance tax revenue and return capitals hidden in varied countries to their home countries.

In order to increase transparency of financial flows moving from Russia overseas, companies will be required to disclose names of true owners.

The ways for solving these issues are specified in the National Plan to Combat Tax Evasion and Concealment of the Beneficial Owners of Companies, prepared by the Federal Financial Monitoring Service.

Companies working in Russia on a permanent basis will be simply prohibited to hand over their property to non-transparent trusts or organizations similar to this form of incorporation – partnerships, associations, etc.

The Ministry of Finance has developed a draft law on foreign controlled persons, under which Russian owners of more than 10% in foreign companies’ authorized capitals will be obliged to pay taxes: legal entities at the rate of 20%, physical persons – at the rate of 13%.

All companies working in Russia will have to keep and provide documentary evidence of beneficiary data. It will be collected by specially established government body in a separate register.

Foreign companies, working in Russia, will be obliged to disclose the ownership structure and owner data. In addition to that, Russian companies will be obliged to disclose data on all foreign affiliated persons.

Counteragents of foreign companies are planned to be engaged in collecting data on their beneficiaries. Deals with non-transparent companies will bear an increased tax burden: reduction of taxable income by costs spent on such deals will be forbidden.

Access to diverse types of state support and participation in state purchase tenders will have to become a supplementary encouragement for business to increase transparency. Non-transparent companies are to be deprived of this access.

Firstnews.ru