scholarly journals Review of case law on notification of tax authorities on the controlled foreign companies

2021 ◽  
pp. 10-25
Author(s):  
Aleksandra Melnikova
Keyword(s):  
Incomplete Information ◽  
Russian Federation ◽  
Case Law ◽  
Legal Regulation ◽  
Foreign Company ◽  
Foreign Companies ◽  
The Russian Federation ◽  
Orthographic Errors

This article is dedicated to revelation and analysis of the gaps in legal regulation of profit taxation of controlled foreign companies (CFC) and notification of tax authorities on the controlled foreign companies via examining the available case law. The author determines six types of legal disputes that arise in the context of submission of participation notices in CFC, as well as CFC notices. Analysis is conducted on the methods of elimination of gaps in legislation of the Russian Federation on controlled foreign companies by introduction of point amendments to the current legislation on CFC. Settlement of legal disputes over interpretation of the Paragraph 7.1 of the Article 309.1 and Subparagraph 2 of the Paragraph 1 of the Article 25.13-1 of the Tax Code of the Russian Federation requires supplementing the Article 25.14 of the Tax Code of the Russian Federation with the Paragraph 3.2 of the following content: “The obligation on submitting the CFC notice does not depend on the financial results of CFC. The existence of tax exemption does not relieve of the duty to provide CFC notice”. The disputes often arise when the taxpayers default the submission period, and after receiving a request from the inspectorate, provide data for not only the companies listed in the request, but other companies as well. For avoiding any related disputes, it is recommended to supplement the Paragraph 2 of the Article 25.14 of the Tax Code of the Russian Federation with the following content: “A revised notice cannot be submitted with regards to CFC, the information on which was not provided in the initial notice”. In order to minimize the actions of inspectorate “with unacceptable formalism”, it is recommended to supplement the Article 129.6 of the Tax Code of the Russian Federation with the Paragraph 3 of the following content: “Submission of incomplete information or information containing technical or orthographic errors, which do not obstruct the identification of foreign company, are not considered a tax crime”.

FEATURES OF FUNCTIONING OF INVESTMENT-INNOVATIVE ACTIVITY. DOMESTIC AND FOREIGN EXPERIENCE

2020 ◽  
Vol 2 (3) ◽  
pp. 90-96
Author(s):  
A. P. DROZDOVA ◽  
◽  
S. M. MOLCHANOVA ◽  
Keyword(s):  
Russian Federation ◽  
Legal Regulation ◽  
Economic Incentives ◽  
Intellectual Activity ◽  
Accounting Data ◽  
Foreign Companies ◽  
Scientific Potential ◽  
The Russian Federation ◽  
Innovative Potential ◽  
Business Entities

The article discusses information sources in assessing the effectiveness of innovations, types of cash inflows, cash outflows in the context of the organization's operational, investment and financial activities. The problem of insufficient relevance of accounting data in the analysis of the effectiveness of investment in innovation is reflected. The need for systematization of the current regulatory legal acts of the Russian Federation to integrate information on the results of intellectual activity into a single mechanism for effective management of the development of innovative potential of the Russian Federation is noted. The experience of foreign companies in the investment and innovation sphere is summarized. The factors influencing the development of the scientific potential of Russian companies and the need to introduce economic incentives for innovation entities are presented. The functions of the RF authorities in the field of legal regulation of innovations for the successful development of mechanisms for interaction between business entities and the state, the protection of intellectual property and the growth of the effectiveness of the practical application of innovative developments are generalized.

scholarly journals International development of the concept of taxation of a permanent representation of a foreign company as an “independent taxpayer” and the experience of its application in the Russian Federation

2021 ◽  
pp. 16-25
Author(s):  
Pavel Igorevich Yakovlev
Keyword(s):  
International Development ◽  
Russian Federation ◽  
Tax Evasion ◽  
Foreign Company ◽  
Double Taxation ◽  
Foreign Companies ◽  
Tax Legislation ◽  
The Russian Federation ◽  
International Tax ◽  
Model Agreement

The subject of this research is the development of the concept of taxation of permanent representations of foreign companies on the international level and its application in the Russian Federation. The object of this research is the permanent representations of foreign companies. The author examines such aspects of the topic, as the use of agreements on avoidance of double taxation, countering the tax base erosion, and the international approach towards taxation of the permanent representation of a foreign company as an independent participant of the market relations. Analysis is conducted on the need for amending the Model Agreement of the Russian Federation of 02.24.2010 No. 84 “On conclusion of intergovernmental agreements on avoidance of double taxation and on prevention of tax evasion on the income and property”. The author traces the transformation of attitude of international tax organizations towards the concept of permanent representation and substantiation of their choice of the concept of taxation of a permanent representation as an independent taxpayer. The scientific novelty is proven by the facts of application of this concept of taxation of permanent representation in the national legislation of multiple countries, international agreements on avoidance of double taxation, Russian national tax legislation and arbitration practice. The main conclusion consists in the response to the selected by the international tax organizations concept of taxation of a permanent representation. The author offers to amend the Model Agreement of the Russian Federation of 02.24.2010 No. 84 “On conclusion of intergovernmental agreements on avoidance of double taxation and on prevention of tax evasion on the income and property”.

scholarly journals Establishment and development of the institution of municipal land ownership

2020 ◽  
pp. 54-70
Author(s):  
Kristina Vadimovna Isaeva ◽  
Yatsek Zalesny ◽  
Vitalii Viktorovich Goncharov
Keyword(s):  
Russian Federation ◽  
Case Law ◽  
Legal Regulation ◽  
Land Ownership ◽  
Regional Government ◽  
Supreme Courts ◽  
Municipal Ownership ◽  
The Russian Federation ◽  
Further Development ◽  
Over Time

This article is dedicated to analysis of the processes of establishment and development of the institution of municipal land ownership. Analysis is conducted on the mechanisms of mediation of municipal land ownership as the legal institution of the unified system of distributed over time historical-legal, socioeconomic, and sociopolitical factors of its emergence and evolution, which being interrelated and interdependent formed the fundamental requirements to legal regulation of this legal institutions, as well as determines the vector of its development. The authors believe that establishment and development of the institution of municipal land ownership in the Russian Federation has passed several historic stages, mediated by the unified system of distributed over time historical-legal, socioeconomic and sociopolitical conditions of the emergence and development of the institution of municipal land ownership in Russia. In the authors’ opinion, further development of municipal ownership law in the Russian Federation requires comprehensive modernization and improvements of the Constitution of the Russian Federation, current legislation, including numerous decrees of the President of the Russian Federation, Government of the Russian Federation, as well as other federal and regional government branches, local self-governance, case law of the Constitutional and Supreme Courts of the Russian Federation.

scholarly journals On some peculiarities and problems of legal regulation of payments without a bank account

2020 ◽  
pp. 34-41
Author(s):  
Ekaterina Vavilova
Keyword(s):  
Public Relations ◽  
Russian Federation ◽  
Case Law ◽  
Legal Regulation ◽  
Civil Code ◽  
Bank Account ◽  
Electronic Payments ◽  
The Public ◽  
The Russian Federation ◽  
Original Interpretation

Due to the extensive changes introduced into the Civil Code of the Russian Federation in 2017, which affected the area of electronic payments, it is relevant to examine the problem and peculiarities of legal regulation of their separate type – payments without a bank account. The subject of this research is legislation of the Russian Federation, case law and doctrine in the area of establishment and development of legal regulation of payments on behalf of private entities without opening a bank account. The object of this research is the public relations emerging in the sphere of legal regulation of payments by payment orders. Analysis is conducted on correlation between payment orders and payments without opening a bank account. The article also examines the grounds for refusal by credit institutions to accept a payment order. The conclusion is made on the existence of discrepancies in understanding of particular grounds for refusal by credit institution to accept payer’s order on transferring funds to a recipient. The formulated conclusions are supported by the law enforcement practice that does not contain the exhaustive list of reasons for refusal. Therefore, the article offers an original interpretation of the Paragraph 2 of Section 2 of the Article 864 of the Civil Code of the Russian Federation stipulating the reasons for refusal to accept payment order for execution.

scholarly journals Tax control over the computation and discharge of VAT in services rendered by foreign companies in electronic form on the territory of the Russian Federation: legal aspect

2021 ◽  
pp. 70-84
Author(s):  
Mikhail Aleksandrovich Eremkin
Keyword(s):  
Russian Federation ◽  
Legal Aspect ◽  
Value Added ◽  
Legal Regulation ◽  
Tax Administration ◽  
Foreign Companies ◽  
The Past ◽  
Electronic Form ◽  
The Russian Federation ◽  
Internet Company

This article is dedicated to the analysis of relevant problems of tax control in the e-commerce sector caused by digitalization and globalization of business. The author gives general characteristics to tax control as the key element of tax administration; examines the peculiarities of legal regulation of the value-added tax for services rendered by foreign companies in electronic form on the territory of the Russian Federation. Description is given to the amendments in the Russian legislation on taxes and fees related to the establishment of new rules of VAT taxation for electronic services provided by foreign suppliers, which have been enacted in the past five years. Attention is turned to such instrument of interaction of the Federal Tax Service of Russia with foreign companies as the “VAT office of a foreign Internet company”. Analysis is conducted on the major problems of tax control over the computation and discharge of VAT in rendering transboundary electronic services on the territory of the Russian Federation, which emerge also due to the gaps in legal regulation. The author outlines the vectors of improving tax control in this sphere. The conclusion is made on the need for amending the legislation of the Russian Federation on taxes and fees, further expansion of the use of digital technologies in tax administration, and creation of infrastructure necessary for automated interaction with various institutions and tax authorities of other countries, development of international cooperation, and formation of tax culture.

scholarly journals Identification of the areas for improving the Russian legislation on taxation of controlled foreign companies based on the experience of European Union member-states

2021 ◽  
pp. 26-39
Author(s):  
Aleksandra Melnikova
Keyword(s):  
European Union ◽  
Russian Federation ◽  
Union Member ◽  
Legal Regulation ◽  
The European Union ◽  
Legal Form ◽  
Member States ◽  
Foreign Companies ◽  
The Russian Federation ◽  
European Union Member States

This article is dedicated to identification and analysis of the gaps in legal regulation of profit taxation of controlled foreign companies (CFC) in the Russian Federation, by comparing the Russian legislation with the legislation of the European Union member-states. Comparison is conducted on the current legislation of the Russian Federation on CFC with analogous rules in France, Germany, Netherlands, and Great Britain. The author determines the similarities and differences in the regimes of profit taxation of controlled foreign companies, and substantiates the need for introducing point amendments to the current legislation of the Russian Federation on profit taxation of controlled foreign companies. The structure of the Russian rules on CFC is largely similar to such in the developed European countries. The definition of the concept of control in the Russian legislation for the most part aligns with the definitions of the analogous concept in the legislation of France, Germany, and Netherlands; although the Russian definition is certainly broader, as it applicable to foreign structures without formation of legal entity, and contains both quantitative and qualitative criteria. Despite formal similarity of the Russian rules on CFC and their foreign equivalents, there are gaps in the Russian legislation, the interpretation of which by the tax authorities and the Ministry of Finance is at times contradictory and often does not benefit the taxpayer. Numerous questions arise from filling out and submitting participation notices and CFC notices, the procedure for which also contains multiple gaps, and the grounds for their submission in the legislation are quite ambiguous. Taxpayers often do not timely notify the tax authority on the participation in CFC or do not submit the corresponding notice due to inaccessibility of software for filling out notices for companies established in particular organizational-legal form.

scholarly journals Foreign trade entrepreneurial activity in modern Russian case law

2021 ◽  
pp. 1-12
Author(s):  
Evgenii Alekseevich Shatunov
Keyword(s):  
Law Enforcement ◽  
Foreign Trade ◽  
Russian Federation ◽  
Case Law ◽  
Legal Regulation ◽  
Theoretical Research ◽  
Entrepreneurial Activity ◽  
Trade Relations ◽  
Analysis And Synthesis ◽  
The Russian Federation

In the era of globalization, international trade relations are an integral part of the economy of majority of the countries, including the Russian Federation. Increase of the role of entrepreneurship in the sphere of foreign trade entails escalated disputes. This article reviews the theoretical aspects of law enforcement practice on the disputes associated with foreign trade entrepreneurial activity. Analysis is conducted on legal regulation of foreign trade entrepreneurial activity, as well as Russian case law in the corresponding sphere, namely disputes considered in arbitration court, and theoretical research on the matter. Methodological framework is comprised of the general scientific and private scientific methods of cognition (dialectical, analysis and synthesis, induction and deduction, comparative-legal, and historical-legal). The author concludes on the lack of uniformity in the approaches used by arbitration courts towards determining the law applicable to transboundary agreements. The creation of uniform case law on the controversial issues requires taking into account the existing law enforcement practice, as well as unifying them based on accumulated experience. For example, in the Russian Federation this process could be facilitated through corresponding clarifications on the level of resolution of the Plenum of the Supreme Court of the Russian Federation with explanations on the key contentious issues pertaining to the disputes in foreign trade entrepreneurial activity. The presented materials can be used in further consideration of disputes in the sphere of foreign trade entrepreneurship, as well as in providing explanations of law enforcement practice.

scholarly journals Redomiciliation of Foreign Companies in the Russian Federation: Assessment of the Aggregate Financial Result

Lex Russica ◽  
2021 ◽  
pp. 71-81
Author(s):  
A. S. Konduktorov
Keyword(s):  
Russian Federation ◽  
Financial Burden ◽  
Economic Effect ◽  
Legal Regulation ◽  
Double Taxation ◽  
Direct Taxation ◽  
Foreign Companies ◽  
Foreign Countries ◽  
The Russian Federation

The paper attempts to assess the fiscal, investment, and monetary repatriation results of the application of legislation on the redomicilation of organizations registered in offshore states to Russian special administrative regions. The study was conducted in the context of the fundamental adjustment of agreements on the avoidance of double taxation concluded with foreign countries, which began in the summer of 2020 on behalf of the President of the Russian Federation. In this regard, the results obtained are more promising than current. In the course of the study, comparative legal and statistical methods were used, and the "reinvestment strategy" of economic entities, which is expressed in the reverse investment of funds previously transferred to the accounts of offshore organizations, was analyzed (In the context of changes in double taxation agreements).The outcomes of the analysis show that direct taxation of an international company that is redomiciled in the Russian Federation does not give a tangible fiscal result and is nothing more than a tool to increase the attractiveness of the Russian legal jurisdiction. However, the volume of mandatory investments accompanying the redomicilation procedure is significant in terms of the degree of financial burden on international companies, which should provide a fiscal effect for the budget system in the medium and long term. Cash-repatriation result of redomiciliation will be equal to the amounts reinvested in Russia from offshore countries; it is expressed in the improvement of the financial system of the Russian Federation by means of displacement of offshore practices. The author summarizes that, in general, the analysis of legal regulation indicates that the Russian Federation does not set the goal of increasing current budget revenues because of the application of the procedure of redomicilation of foreign organizations, but expects a promising financial and economic effect.

Particularity of Recognition and Enforcement of Foreign Arbitral Awards in the Russian Federation: Public Policy

2019 ◽  
Vol 19 (1) ◽  
pp. 307-322
Author(s):  
Václav Pravda
Keyword(s):  
Public Policy ◽  
Russian Federation ◽  
Common Knowledge ◽  
Foreign Companies ◽  
The Past ◽  
The Future ◽  
Recognition And Enforcement ◽  
The Russian Federation ◽  
Broad Interpretation ◽  
Basic Ideas

Summary This article elaborates on the issue of recognition and enforcement of foreign arbitral awards in the Russian Federation. It is common knowledge that foreign companies seeking R&E in Russia suffered damage because of the broad interpretation of Russian public policy in the past decades. However, it is uncertain how the present judicial development appears like and where it will lead in the future. The article specifically considers two basic ideas on the issue at hand: one is slightly critical (Karabelnikov) while the second is rather optimistic in regard with the recent development (Zykov). The main goal is to introduce the issue to the respective readers and to try to inflame a discussion.

Problems of establishment and development of the Institution of personal data protection in the Russian Federation: historical-legal aspect

2020 ◽  
pp. 28-35
Author(s):  
Yanis Arturovich Sekste ◽  
Anna Sergeevna Markevich
Keyword(s):  
Russian Federation ◽  
Data Protection ◽  
Information Technologies ◽  
Legal Aspect ◽  
Personal Data ◽  
Legal Regulation ◽  
Private Life ◽  
Russian Society ◽  
Personal Data Protection ◽  
The Russian Federation

The subject of this research is the problems emerging in the process of establishment and development of the Institution of personal data protection in the Russian Federation. Special attention is turned to the comparison of Soviet and Western models of protection of private life and personal data. The authors used interdisciplinary approach, as comprehensive and coherent understanding of socio-legal institution of personal data protection in the Russian Federation is only possible in inseparable connection with examination of peculiarities of the key historical stages in legal regulation of private life of the citizen. After dissolution of the Soviet political and legal system, the primary task of Russian law consisted in development and legal formalization of the institution of protection of human and civil rights and freedoms, first and foremost by means of restricting invasion of privacy by the state and enjoyment of personal freedom. It is concluded that the peculiarities of development of the new Russian political and legal model significantly impacted the formation of the institution of personal data protection in the Russian Federation. The authors believe that the Russian legislator and competent government branches are not always capable to manage the entire information flow of personal data; therefore, one of the priority tasks in modern Russian society is the permanent analysis and constant monitoring of the development of information technologies.

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