Prospects, comments, solutions

ProsperoScope is a newsletter of Deloitte’s Private Client Service team. This newsletter presents recent and upcoming changes in Russian and international tax legislation, and information about trends and interesting developments in the private client world.

It is not intended to be a comprehensive statement of the law. We accept no liability for the completeness and accuracy of information contained in the newsletter or for any decisions made by you after reading the newsletter without additional professional consultation.

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4 September 2017

Controlled transactions executed through undeclared foreign bank accounts

The Russian Federal Tax Service has recently published comments1 on foreign currency transactions executed by Russian currency control residents through foreign bank accounts, which were not duly disclosed to the Russian tax authorities.

In particular, the Federal Tax Service underlines that foreign currency transactions using funds held on currency control residents’ undeclared accounts (deposits) with banks located outside of Russia will be considered as not permitted foreign currency transactions.

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1 August 2017

Exercising control for CFC purposes

The issue of control criteria remains high on today’s CFC-related agenda. The Russian Ministry of Finance has recently offered clarifications of such criterion as the veto power.

According to the Ministry, any details of a business relationship that affect or may affect decisions, related to the distribution of after-tax profits, shall be taken into consideration when determining the fact of “exercising control” or “exerting a controlling influence on the company's decision-making”. In particular, the ability to affect the above-mentioned decisions may come down to the right to block such decisions, irrespective of the size of a shareholding.

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5 April 2017

The Russian Federal Tax Service has released a draft order that approves the procedure and the form of confirmation of the Russian tax residency (hereinafter, the Draft). In our opinion, the Draft may make life a lot easier for the taxpayers now that the procedure for obtaining the confirmation is finally regulated.

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24 January 2017

On 11 January 2017, the Federal Tax Service of the Russian Federation published Order No. MMV-7-13/679@, approving the CFC (controlled foreign company) notification form and providing the guidance for filling in and submitting the form to the Russian tax authorities.

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20 January 2017

The European Council adopts directive on access for tax authorities to beneficial ownership information

On 6 December 2016, the European Council adopted a Directive granting access for tax authorities of the EU member states to information on the beneficial owners of companies with financial accounts held in the EU member states.

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