Deoffshorization


 

Deoffshorization

And How Alinga Consulting Group Can Help

By Peter Arnett
Partner

 

 

Russia’s new “deoffshorization” law is part of a concerted effort by governments around the world to regulate and tax the income and gains diverted to tax havens by businesses and individuals.

By 2018 Russian authorities could be receiving information, previously secret, about shareholdings and beneficial ownership in countries around the world, including from some of the favorite low-tax jurisdictions.

Responsibility of Tax Residents of Russia:

  • to disclose significant ownership (> 10%) in offshore companies, and
  • to pay Russian tax on the overseas profits of certain offshore companies, called controlled foreign companies (“CFCs”)

Alinga is ready to help:

  • Identifying any foreign group companies which might be Russian tax resident under the “effective management” test.
  • Reviewing your group structure and determining the potential Russian (and overseas) CFC status of group companies.
  • Filing notices of participation in foreign companies and control over CFCs with the authorities.
  • Advising on possible restructuring of the group to avoid CFC issues.
  • Assessing CFCs to determine whether any exemptions might be appropriate.
  • Assisting with the collection of the necessary supporting documentation for a CFC.
  • Maintaining the accounting records of overseas group companies (whether CFCs or not), calculating their local tax liabilities and any of their profits attributable to a Russian controlling shareholder under the new law.

Talk to our experts before the tax authorities talk to you!

  • The new era of cooperation between the world’s tax authorities will radically change the effectiveness of existing offshore holding structures.
  • Alinga has the accounting, tax and legal experts to help clients devise the optimum structure for holding their personal and business investments and to stay compliant with the law.

Contact Alinga Today
Telephone & Fax: +7 (495) 988-21-91
consult@acg.ru

 

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