#3. The Legal Aspects of Crowdfunding in Russia

The Cypriot Council of Ministers issued a decision on the 19th of March 2014, in relation with the scheme for naturalization of investors in Cyprus by exception on the basis of subsection (2) of section 111A, of the Civil Registry Laws of 2002-2013.

In recent years a trend towards registration of companies in the European jurisdictions with middle-income tax. This is due to the fact that often such states and Russia signed a treaty on the avoidance of double taxation, the advantages of which can be used in planning taxation of Russian companies.

The world was told so many times about globalization, strengthening of international ties and blurring of boundaries between states in economic, social, cultural terms. Therefore let’s omit the due introduction about the relevance of knowledge about the European value-added tax.

In accordance with the generally accepted definition, "crowdfunding" means collective cooperation of individuals who voluntarily pool their money and/or other resources together to support initiatives, efforts and projects of other people or entities.

The principle of ‘Substance over Legal Form’ is central to the faithful representation and reliability of information contained in the financial statements. The key point of the concept is that a transaction should not be recorded in such a manner as to hide the true intent of the transaction, which would mislead the readers of a company's financial statements.

In accordance with the Federal Law “On Insurance of Household Deposits in Banks of the Russian Federation” the Deposit Insurance Agency (DIA), in the case of revocation (cancellation) of the banking license of a bank, pays insurance indemnity to individual depositors from the compulsory deposit insurance fund.