Russia offers to enter into bilateral agreements with offshore companies

Russia recently was invited to a bilateral agreement with the low-tax offshore jurisdictions and as a measure to deofshorizatsii economy, Putin said in an interview with RIA Novosti news portal.

«Fighting attempts to avoid paying taxes by using offshore is a very time-consuming and difficult task. This requires the use of both national and international instruments to regulate. As a concrete measure deofshorizatsii Russia proposed a bilateral agreement with the low-tax jurisdictions and offshore, "- said the president.

Question

tax information exchange currently solved between Russia and other countries at a bilateral arrangement.

Within the main directions of tax policy, as well as the course taken by the authorities to deofshorizatsii economy, Russia plans to hold talks with each offshore and low-tax jurisdiction to enter into intergovernmental agreements with them on the exchange of tax information to be able to counteract schemes to minimize tax payments. We plan to create a model of an intergovernmental agreement.

To avoid the need to be ratified in each agreement at the expense of tax information exchange with low-tax jurisdictions and offshore companies, the Ministry of Finance of the Russian Federation is planning to make some amendments to the Tax Code of the country to allow the participation of foreign tax authorities in Russia carried out tax audits, if it is provided relevant international agreement.

also to counter the possibility of tax evasion through the use of low-tax offshore jurisdictions and to be prepared to make some suggestions in the Russian legislation the provisions of the final beneficiaries and controlled foreign companies.