Military Review

Impact on the "offshore economy"

The term "offshore economy" has become virtually integral for large companies. Due to the fact that many representatives of big business are not ready to execute the main call of the tax authorities “pay taxes and sleep peacefully”, offshore companies are very popular. Moreover, this popularity has been steadily growing in recent years, and, according to estimates by World Bank specialists, around 10% of the total global profit is passed through offshore companies.

Impact on the "offshore economy"

The growth of the level of involvement in offshore activities has until recently been observed among Russian business elites. Large-scale Russian business, having at one time realized that there are much more “comfortable harbors” for the circulation of funds than the Russian profile system, decided to actively use these “harbors”. Instead of registering enterprises in Russia, registration took place in those countries and in those territories where the tax burden is much less than in our country. Favorite places for business that did not want to become de jure Russian are Cyprus and the British Virgin Islands. The volume of offshore operations amounts to tens of billions of dollars, which leads to damage for the Russian treasury. Almost a quarter of all companies registered in Cyprus conduct business (no more than “paper”) with the Russian business. It is not difficult to guess that they were created with the active interest of Russian business.

The use of offshore structures by one company or another does not, on the one hand, mean crime, and therefore it would seem pointless to raise the issue of appealing to Russian business to “quit Cyprus” and return, sorry for slang, grandmas home ... However, there is a certain peculiarity of reference cases of Russian representatives of large business, which is worth paying attention to. The peculiarity of this is that, while drawing up firms over the hill (on the same Cyprus), the Russian “money bags” manage to even demand certain subsidies from the government for doing business. The formula is approximately the following: the company (its part) belongs to a Russian citizen, which means that if the stars converge, you can receive funds from state bodies for its activities, even if the company is, in fact, moving away from taxation in the Russian Federation. As an option: to increase the number of jobs.

According to the 2012 year, Cypriot "traces" were found in such large Russian companies as Lukoil, Norilsk Nickel, VimpelCom, KamAZ, Metalloinvest, SUEK, Rostelecom, Severstal, etc. In particular , Norilsk Nickel on 100% (by shareholding) was associated with Norilsk Nickel Cyprus Ltd., and Sevestal by Alexei Mordashov by 20% (also in terms of promotions) from Astroshine Ltd of Cyprus, another 20% from Loranel Ltd. and by about 11% with Rayglow Ltd (all - Cyprus).

Until a certain point, the state regulatory authorities looked askance at the Cypriot offshores, shouted, but no decisions were actually made. Everything stopped no further than the aforementioned appeals to patriotism and a return to the Russian harbor. But the interest in additional banknotes and shares of the owners of large companies ran counter to the notion of patriotism, and even more so to the interests of the Russian harbor ... In general, money continued to flow through numerous offshore offices in the style of Roga & Kopyta Ltd., while the Russian budget continued not only did not receive less funds in the form of taxes, but also lost a lot of money on all sorts of subsidies to the “poor and unfortunate” companies of Russian owners who decided to leave the Russian jurisdiction in whole or in part.

The matter did not go beyond oblique views and booing also due to the fact that the scheme used by individual business representatives did not allow to take effective measures. One of the most popular schemes in this regard is as follows. Two companies are registered, and one of them is an offshore in every sense of the word. The second company is the law-abiding Cypriot resident. It is this Cypriot company that owns the rights to the trademark. As a result, it turns out that the Cyprus company belongs to the offshore, and the Russian company, in turn, belongs to the Cyprus company.

What did all this lead to? And here is the reason: when paying interest by a tax agent when applying the agreement on avoidance of double taxation, they were not withheld. And the payment of the dividends was carried out at a reduced rate in 5%. Dividends went along the “Cyprus-Offshore Company” chain, while the first could indicate the minimum income from which the tax was paid. Often it turned out that the tax paid on the activities of a Cypriot company, which was “closely tied” with a large Russian company, was less than one percent of real earnings. A large Russian company, for obvious reasons, such a move "stories"Fully arranged.

But, as they say, music did not play for a long time ... There were nuances of a legislative nature and international rules for conducting transactions (the OECD Model Convention), on the basis of which it is necessary to report on the final recipient of transaction income. And here the most interesting began. If the final recipient is an offshore, then what is called, I'm sorry, sorry, the tax rate rises to the usual level, ceasing to be preferential. Moreover, if the Cyprus “laying” mentioned repeatedly is a “laying” without having a real presence in Cyprus, the regulatory authorities also raise the tax rate for the company that wanted to play in the “dark forest”.

Guided by modern standards, the Russian tax authorities decided to withdraw the Russian "users" of the Cyprus economic freebies "from the twilight." So it was confirmed that Severstal Alexei Mordashov, until recently, did not disdain to use a whole group of Cypriot Rogs and hoofs for tax benefits.

After lengthy legal proceedings, a decision was made (the Moscow Court of Appeal rendered it): to declare offshore Severstal in Cyprus “not entitled to dividends” and to collect additional tax payments from Severstal in the amount of approximately 1 billion rubles. And this is only for 2011 a year and only for one company. If the Russian tax authorities continue to resort to this kind of practice of bringing large Russian companies out of the offshore shadow, then it is safe to speak of a substantial increase in tax revenues to the budget.

The company of Alexey Mordashov intends to appeal against the decision of the judge MV Larin (full text). An appeal may be made by the Ninth Arbitration Court of Appeal. Until the end of the appeal period, a day remains. If this court instance decides to make a decision, then it will become an important precedent for the Russian economic system and will strike a clear blow to the structures accustomed to turning civilized income into personal gain using gray schemes and modern Horn and Hoofs.
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  1. 210ox
    210ox 29 November 2016 06: 31
    Let's see, see .. Will the Mordashevites have time to transfer dividends to where they should ...
    1. Donhapa
      Donhapa 29 November 2016 12: 27
      Quote: 210ox
      Let's see, see .. Will the Mordashevites have time to transfer dividends to where they should ...

      Business is 95% thieves and grabbers ... Honest ones cannot resist
      1. gladcu2
        gladcu2 2 December 2016 18: 54

        Business should be limited to understandable, simple laws. The implementation of laws should be monitored by the state.

        The person who is the guarantor of the laws should be morally stable. Since he and only he shows his goodwill, the law guarantees. This form is called the dictates of the law and does not deny the interests of the majority.

        Now answer the question.

        Who benefits from offshore systems?

        This article describes the mechanism for withdrawing money from the state. Who created the conditions for such an opportunity? Russia? USA? Upper Volta?

        Answers to this question should be sought, not criminal schemes described. Disclosure of such schemes is a correction of the consequences, but you need to work in anticipation.
    2. T-130
      T-130 29 November 2016 13: 21
      Yes, most likely they will manage to transfer dividends, but once (in case of adoption of the law), and they are usually transferred annually!
    3. siberalt
      siberalt 29 November 2016 13: 53
      Offshore - nothing illegal. Then pass a law - who is offshore with enterprises from privatization, then nationalize them back. Meaning? Do it and sleep soundly. And what was state and got free then must first work for him.
      1. Kolya
        Kolya 29 November 2016 20: 52
        The law is needed on the collection of capital tax leaving the jurisdiction of the Russian Federation deducted as a security deposit for example 20%. Export of goods also with a deposit so that money does not remain there or remains with payment of tax for the exported capital. A very simple transparent system, but our legislators do not want a transparent system, they want it to be dim. And officials would be much less needed.
        1. gladcu2
          gladcu2 2 December 2016 21: 06

          They are absolutely right. Legislators make "muddy" laws to prevent the state from receiving additional taxes. Only this conclusion.

          But! The question is as follows.
          If the legislators represent disparate interests, and we see that in the world there is some strange regularity, centralization. Because countries are all struggling with these offshore. All countries have similar problems.

          Who needs it?

          Leading question. What unites all countries in the world?

          Do you understand that someone is ruining the state?
  2. Tatar 174
    Tatar 174 29 November 2016 06: 31
    And what earlier, about 10 years ago, would at least hinder the return of these businessmen back to the country? This is how the Communists succeed, they are now criticizing everyone, saying that they’re not doing everything that way, but we would have done differently. And what prevented them before, when they were in power? So it is here. Okay, at least now it’s kind of begun even in words so far to bring some sort of tax revenue from the super-rich into order, and even hard workers of 10-15 thousand continue to withdraw taxes from the salary at 13 percent and everything else that we buy and for what necessary spend these crumbs, too, part of the tax goes. Maybe this robbery is enough to continue? Aw, Mr. or Comrade President?
    1. Mountain shooter
      Mountain shooter 29 November 2016 07: 17
      But it interfered. The wrong team was in power. The president was the one, but the team was not yet. And all these years there was a purposeful work to REPLACE the team. Surprisingly, it was the return of Crimea and the consolidation of society, as well as the frank "bulk" of the "civilized world" on Russia that accelerated these processes.
      1. GOGENATOR
        GOGENATOR 29 November 2016 17: 25
        I do not notice these processes. The economy is still falling, thousands of enterprises are closing in on the country. Russia's budget is 7 times smaller than the German budget - this is a shame.
      2. The comment was deleted.
    2. Pravodel
      Pravodel 29 November 2016 07: 35
      Previously, figures such as Ulyukaev were sitting in the government of the Russian Federation, who, however, have not yet been completely swept away, and they did not care about offshore in Russia, they did not care about how business was conducted in Russia. But, thank God, the hands have reached, now it can deal with the robbers.
      1. Stanislas
        Stanislas 29 November 2016 20: 59
        Quote: The Truth
        Previously, figures like Ulyukaev were sitting in the government of the Russian Federation
        And in NA they were covered by "scientists", whom they also got, thank God!
    3. krops777
      krops777 29 November 2016 07: 59
      To return these businessmen not only to the country but also to the place of residence of the enterprise, or the office and legal address in Moscow, and the enterprise somewhere in Norilsk or Krasnokamensk, why should people develop the infrastructure there and the slaves will work for a penny in the form of a penny all the same, they won’t go anywhere.
    4. olimpiada15
      olimpiada15 29 November 2016 08: 07
      Tatar 174 Generally agree with your comment, with the exception of the part "like the communists".
      Understand that this is about the same structure.
      A certain circle of people broke through to power back in the days of the USSR, for a start, creating absurd situations in the economy, guided by "good intentions."
      When the "cleansing" of the ranks of the CPSU began, it was carried out by persons from the same circle that created the problems, and the most powerful personalities striving for justice, real communists who worked for the good of the country, were excluded from the ranks of the CPSU.
      Criminal cases were brought against strong business executives, literally sucked out of ordinary situations and even falsified, so the mechanism of preparation for the collapse of the country worked. And the same structure deliberately brought economic processes in the country to absurdity, seized power, adopted regulations that legitimized lawlessness, then began the seizure of public property, the collapse and seizure of enterprises, the withdrawal of capital from the country. And now they are watering the past, confirming with egregious facts, and these facts are true, because the structure itself organized and knows what it was doing. Acts of the fight against corruption also take place, just the system flaunts or pretends to get rid of its individual representatives, imitating violent activity. In fact, the clean, current businessman has a dad who, in the KGB ranks, set the stage for the seizure of the enterprise, organized, then hired a group of managers who increased the production capacities of the already seized enterprise and resolved issues at the expense of the workers, and when the situation stabilized, they were fired and now an effective owner, white and fluffy, broadcasts successes from a TV screen. And behind were numerous victims of this ascent, but the story is silent about this.
      The roots of today's problems in the economy are in one system, the representatives of which are robbing the country today, and in the 80s they occupied seats in the government of the country and fought with party cards in their pockets against those communists in the country who were patriots. You ask, where are those leaders under whose leadership the industry developed? Yes, they are now all the monuments, regardless of age and state of health, replenished the ranks of the cemetery in the 90s.
      1. gladcu2
        gladcu2 2 December 2016 21: 48
        olympics 15

        Let's do it.

        Let's start with the principles, and not with the facts that you will operate on. If we begin to twist facts, we will get bogged down in the proofs of these facts and will not achieve the task.

        The task is to gain mutual understanding among the majority.

        And the majority, respectively, will impose its point of view of the minority. So the society will get progress.

        Who are the communists?

        This party has set itself the task of building a just society. A society that takes into account the interests of the majority.

        Why was this party subjected to external destruction? Because the party fought for its goals and was defeated.
        Why was the party defeated? Because the party turned out to be traitors.

        Why were traitors in the party?

        The answer requires an extended explanation.

        Here is the Roman legion. The advantage of the Roman legion in combat combat. Each soldier MUST keep order. If he falters, the whole cohort will perish. Because the soldiers have weapons and training for battle ONLY in the ranks.

        By analogy, we pass to the party. In the party were:
        1. Poorly trained communists due to the expansion of the party.
        2. Dumb, members of the Communist Party, uneducated and NOT able to raise their level of education.
        3. Frank traitors who opposed party goals
        4. Party laws have become liberal. The relaxation of internal discipline began.
        5. The party leadership made liberal mistakes. Cleaning of unnecessary party members is not carried out regularly and not on time.

        Here is the answer. Why the USSR based on the ideology of universal equality was defeated.

        But what to do is another topic.
        1. gladcu2
          gladcu2 2 December 2016 22: 13
          In short, yet.

          When the number of members in a party passes a critical value, the decomposition of ideology begins.

          Relatively speaking, a party cannot have more than 10 members; otherwise, the destruction of ideology.

          Based on such considerations, the electoral system needs to be reviewed. Accept such as in the USA.

    5. Nyrobsky
      Nyrobsky 29 November 2016 09: 03
      Quote: Tatar 174
      This is how the Communists succeed, they are now criticizing everyone, saying that they’re not doing everything that way, but we would have done differently. And what prevented them before, when they were in power?

      Communists in power and offshore? !!! This is "strong"))))) Soon Vanka the Terrible will fall under the distribution for YUKOS belay
    6. gladcu2
      gladcu2 2 December 2016 21: 26
      Tatar 174

      You correctly posed the question with an edge. Yes, the president is responsible for the law.

      Now answer yourself your own question.

      What is the reason that the president could not rectify the situation 10 years ago? I will write these reasons, and you select the one you need.

      1. The President is a thief.
      2. The President is lazy.
      3.President is stupid.
      4. The president could not because there is not enough internal power.
      5. The President could not because the necessary staffing is lacking.
      6. The President could not, due to circumstances of external political pressure.
      7. The President could not by virtue of international laws.
      8 The President could not by virtue of conspiracy theories.

      Paragraphs 1.2.3, let’s leave, we see the president every day on TV and can present his portrait, performance.

      What about the rest?
  3. knn54
    knn54 29 November 2016 06: 59
    Execution cannot be pardoned ...
  4. cap
    cap 29 November 2016 07: 36
    A large Russian business, at one time realizing that there are much more “comfortable harbors” for cash flow than the Russian specialized system, decided to actively use these “harbors”. Instead of registering enterprises in Russia, there was registration in those countries and in those territories where the burden of taxation is much less than in our country. Favorite places for a business that did not want to become de jure Russian are Cyprus and the British Virgin Islands.

    It is necessary to land for this, and to the quiet Vanino harbor. am
    1. FID
      FID 29 November 2016 10: 50
      I apologize, but in Vanino there are no corresponding institutions, but on the way to Vysokogorny (from Sovgavni to Khabarovsk) they are ...
  5. Kenneth
    Kenneth 29 November 2016 07: 54
    The author is a naive Chukchi boy. Not for offshore companies, they took up Severstal, which someone liked. We will soon find out to whom.
  6. Altona
    Altona 29 November 2016 08: 09
    Mr. Deripaska and his GAZ group also have offshore jurisdiction. It would also be necessary to shake the oligarch's comrade, and not only him. And maybe even pull at the causal places. But offshore would still be fine, but we have complete parasites, economic masturbators represented by Rusnano and Chubais, who only take money and give nothing.
  7. alexej123
    alexej123 29 November 2016 08: 35
    As Wangyu says: There will be no high-profile cases. If there is work on deoffshorization, it will be painstaking and imperceptible. And the theme "Evil", the author is a plus.
    1. Egoza
      Egoza 29 November 2016 09: 07
      Quote: alexej123
      If there will be work on deoffshorization, then painstakingly and imperceptibly.

      The main thing is to have it. And then you read how "citizens" are robbing their country, and involuntarily I recall the film "Shchors", where in conditions when the Red Army men suffered from a lack of food and uniforms, Old Man Bogun gathered all the rich in the opera house, rolled out the Maxim machine gun onto the stage, and quietly asked "Do you know what this is? This, citizens, a machine gun ..." and you know, so quietly and peacefully the citizens of Kiev donated everything to the Red Army. what was needed ... laughing
      1. V.ic
        V.ic 29 November 2016 09: 48
        Quote: Egoza
        Old Man Bogun gathered in the opera house richer

        Well, blinnnn, Elena! You can’t substitute like that! That was Old Man Bozhenko Vasily Nazarovich, and Colonel of the Zaporizhzhya Army Ivan Bogun died in the 17th century.
        1. Egoza
          Egoza 29 November 2016 10: 01
          Quote: V.ic
          That was Old Man Bozhenko Vasily Nazarovich, and Colonel of the Zaporizhzhya Army Ivan Bogun died in the 17th century.

          Oh, for sure. recourse I haven’t seen the movie for a long time. It baffled me that Shchors regiment was called Bogunsky, and Bozhenko ... yes, Tarashchansky. Nevertheless, the method is very effective.
          1. V.ic
            V.ic 29 November 2016 11: 15
            Quote: Egoza
            Nevertheless, the method is very effective.

            Therefore, the CheKa "formalized" him, since Vasil Nazarovich began to "milk" on the territory "cared for" by the Chekists.
          2. Freeman
            Freeman 29 November 2016 16: 51
            Fidget ↑ Today, 10:01 AM
            I haven’t seen the movie for a long time.

            hi Recall this epic episode.
      2. alexej123
        alexej123 29 November 2016 10: 17
        Lena, I have the keyword If. We are all a bit idealistic, hope for the best.
      3. weksha50
        weksha50 29 November 2016 13: 51
        Quote: Egoza
        quietly asked "Do you know what it is? This, citizens, a machine gun ..." and you know, so quietly and peacefully the citizens of Kiev donated everything to the Red Army. what was needed

        Horror example ... hi
  8. vladimirvn
    vladimirvn 29 November 2016 08: 47
    The problem is that our state itself does not hesitate to use offshore. And it’s very active.
    1. moscowp
      moscowp 29 November 2016 09: 56
      That's right. For some reason, the article does not say that all kinds of state corporations were one of the most active clients of offshore companies.
  9. Sidel45
    Sidel45 29 November 2016 09: 17
    Chey-t, I have more oversized things regarding winning the state, both in this case, and in all other others. If we already have the general director of the FEDERAL STATE Unitary Enterprise “Russian Post”, i.e. A public servant is 100%, and not some bourgeois there, receives a premium of 45,4 million rubles, and the Kremlin shrugs its hands in its comment, what can I talk about? This can also be attributed when the same Kremlin and the White House, lamenting about the lack of money in the budget, cancel the indexation of pensions for working pensioners, but refuse to introduce a progressive taxation scale for the rich. One can only admire the relentless care of the population.
  10. Fox
    Fox 29 November 2016 10: 10
    Well, I don’t know ... looking at the extortions that are happening in small business, I would also be glad to flee to offshore. The official reket of government agencies is still fun ... when you are summoned to the tax commission and in plain text they say, "pay a million in the treasury, otherwise our fees are bad ... or we will fine you ... we will find you for what, but 3 times more ... "and your objections and all fees and taxes they do not care!
  11. Monster_Fat
    Monster_Fat 29 November 2016 10: 44
    The author is silent. Now companies are going offshore and even in "western jurisdiction" for another good reason - because of the notorious "sanctions". Offshore companies can easily get loans from Western banks, recredit and refinance loans at low interest rates, and their transactions in the West are not subject to "scrutiny and scrutiny" like transactions with companies under Russian jurisdiction. And by the way, this reason has become the main one and now, due to the stupid policy of the Central Bank, the final departure of large companies under Western jurisdiction has begun, they are no longer afraid of "normal" taxes, they are simply (for now) trying to preserve the "Russian" component in order to reserve the possibility of receiving Russian state "injections" and "discounts" from the state for their actions in this country.
  12. akudr48
    akudr48 29 November 2016 11: 53
    If the final recipient is offshore, then what’s called, sorry, sorry, the tax rate rises to the usual level, ceasing to be preferential ...

    If the Russian tax authorities continue to resort to this kind of practice of removing large Russian companies from the offshore shadow ...

    If this court upholds the decision, then this will become an important precedent for the Russian economic system ...

    If ......, then ......
    Familiar conditional sentences, for example, if my grandmother grew a mustache, then she would be a grandfather.

    It is simply impossible to hope for the resolution of problems with offshore companies in favor of the state and the people with such an abundance of "if" conditions. And this is unconditional.

    Such a volume of "if" arises, for example, in big science, scientific search in cognition of the new is inevitable, as well as conditional transitions "if-then", with the appearance of dead-end branches and wandering in unknown space.

    As for the management of economics and finances, this is still easier than when looking for the Higgs boson, and the experience of the surrounding countries before our eyes. People find the truth in governing the country, lifting it out of the swamp of corruption, theft and betrayal, if they want, for example, as in Singapore.

    As the Hippo cat would say, solving the problem of offshore in Russia is not Newton’s bin, it’s much easier.

    If the state would solve this issue, that he would be resolved.

    А if the government in the person of large business people assigned to bureaucratic posts does not solve this issue, but acts hand in hand with offshore structures, that there is no chance to resolve this problem.

    It is not necessary to start with offshore companies, but with an offshore government.
  13. weksha50
    weksha50 29 November 2016 13: 46
    "The company of Alexey Mordashov intends to appeal against the decision of judge M.V. Larin" ...
    Hmm ... There is enough arrogance ... I robbed YOU, and YOU - I will answer for this ...
    It's time to move on from talking to business ... Tax evasion - undermining the country's economy - anti-state activity (or whatever it is ... "Enemy of the people" seems to be outdated, and for the people no one is moving fins now) - undermining national security ( and economic security is its component) - life imprisonment and confiscation of EVERYTHING, at the root, not only from the defendant, but from everyone even through thirty-three doors of relatives ...
    A couple of real, demonstrative trials should cool the "hot thieves" heads ...
    1. Krabik
      Krabik 29 November 2016 14: 26
      This is to chop the branch on which we sit, and the oligarchs easily jump to other countries.

      It is necessary to act more flexibly;)
      1. weksha50
        weksha50 29 November 2016 18: 31
        Quote: Krabik
        This is to chop the branch on which we sit, and the oligarchs easily jump to other countries.
        Need to be more flexible

        Duc ... Every time - a reason not to chop this bitch ... Why not make it impossible for the oligarchs to "jump off" to other countries?
        Our government has enough flexibility, just like a boa constrictor ... Only here a boa constrictor in nature - aches and strangles, and then eats, if we talk about this cynically ...
        And here he simply "slips" on the body of these thieves-oligarchs ... He strokes, so to speak ...
  14. The comment was deleted.
  15. pepel
    pepel 29 November 2016 14: 56
    If capitalists deducted taxes at the address of registration of plants and factories, and not at the address of the central office, which can be anything, then there would be less problems with offshore companies. These amendments to the Tax Code are voiced by some deputies of the State Duma, but everything is empty.
    1. moscowp
      moscowp 29 November 2016 21: 24
      they deduct at the place of registration, read the article. Now they are mainly optimizing only taxes on dividends to ultimate owners. Dividends are paid on net profit after paying income tax at the place of registration of the legal entity.
  16. Lumumba
    Lumumba 29 November 2016 15: 00
    Quote: Donhapa
    Business is 95% thieves and grabbers ... Honest ones cannot resist

    More likely 50/50. Believe me, I know what I'm talking about.
    GOGENATOR 29 November 2016 17: 27
    Oh! How interesting are the tens of billions of dollars in Cyprus are Russian oligarchs and enterprises?