#2. Transparency Elixir: OECD Exploring Alchemy

Dear readers,

This is the latest edition of our corporate journal “Korpus Prava. Analytics”, where we tried to collect the most trending topics of this summer.

In this issue you will learn why 2015 became a turning point for the owners of foreign companies, how to get through the transition period and pay taxes under the new rules. Whether to abandon using foreign companies for business and tax optimization or pay taxes under the rules established for taxation of income of foreign companies, what today holds for us?

The Automatic Exchange of Information is one of the most burning topics today. Information exchange has become the latest ingredient of the OECD “cocktail”, which made Russian business believe that a new reality has come. In this issue we will discuss how the information exchange will be carried out and what to expect from it in the future.

Our senior lawyer responds to the question why for many years Cyprus remains an almost non-alternative jurisdiction in international tax planning for Russian business.

We continue our series of publications about the value-added tax imposition system in the European Union and have examined violations related to the VAT evasion.

We hope that in this edition each reader will find some useful information. As always, we welcome your questions, suggestions and criticism — feel free to contact us in whichever way is most convenient to you.

See you on the pages of “Korpus Prava. Analytics”!

Artem Paleev
Managing Partner
Korpus Prava

Tatiana Frolova

Leading Lawyer

Korpus Prava Private Wealth

For the owners of foreign companies 2015 became crucial. President Vladimir Putin’s statement on the need to pay taxes from offshore companies slowly, but steadily comes true, and now the country is going through the so-called transition period, when everyone learns to live and pay taxes according to new rules.

Olga Kuramshina

Ex-Leading Lawyer

Tax and Legal Practice

Korpus Prava (Russia)

For many years Cyprus has been and still is an almost single-option jurisdiction for international tax planning for Russian business. There are many reasons for this, starting with highly favorable tax system and ending with affordable prices for the establishment and maintenance of business of legal entities.

Irina Kocherginskaya, LL. M.

Managing Director

Tax and Legal Practice

Korpus Prava

Russian business is a young substance, which had to come through a lot even over this short period. The time has proved that a Russian entrepreneur, who survived in the early 90s, and came through 1998 and 2008, is prepared for anything and knows like no other that the only constant thing is changes.

Yana Karausheva

Ex-Junior Lawyer

Tax and Legal Practice

Korpus Prava (Russia)

This article continues the series of publications about the system of taxation with value-added tax in the European Union. In most cases VAT evasion schemes exploit the privilege stipulated by law for transactions concerning cross-border supply of goods when goods are transported from one state of the European Union to the other.

Dr Ariel Sergio Goekmen

Member of the Executive Board

Schroder & Co Bank AG, Zürich

Swiss real estate for private use has been en vogue for some time now. Many foreign passport holders who move to Switzerland are interested in acquiring property and others their own holiday homes for private use. There are regulatory changes planned at the federal level and the potential impact is at this stage still uncertain.

Dr Ariel Sergio Goekmen

Member of the Executive Board

Schroder & Co Bank AG, Zürich

The dramatic recent developments in the Swiss banking sector seem to point in only one direction: south. The financial crisis in 2007–2008 took its toll on Switzerland, with the number of banks decreasing from 331 in 2006 to 275 in 2014.

Maxim Nikitin

Chief Legal Counsel

Virgin Connect

Management of risks typical of M&A transactions (mergers and acquisitions) can be easily structured according to stages of this business operation. There are three main stages of the M&A project, among which are due diligence, negotiation and execution of the company sale.

Ekaterina Pazemova

Master of International Private Law

Legal and Tax Advisor

Saint-Gobain Group

Dynamic business development amid active globalization forces entrepreneurs and modern market players to pay attention to institutions of law used in international practice, including in common law systems. Trust institution is one of such institutions.