The law on making amendments and addenda to the Tax Code of the Russian Federation was adopted on November 25, 2014, and it will come into force as of January 1, 2015. This law relates to taxes on income of foreign companies under control and revenue of foreign organizations. This law is otherwise called as an anti-offshore legislation.
On September 18, 2014 the Russian-British Trade Chamber in Saint-Petersburg jointly with LLC “President Consult” and along with its partner, EMG consulting company, held a seminar on the following topic: “Crusial issues of migration and accounting legislation. Civil legislation reform”.
The celebration of the 10 th Anniversary of the Russian-British Chamber of Commerce’s activity in St. Petersburg took place on the 26th of June 2014.
Our company was one of the Official sponsors of that event. Mikhail Onatskiy, Managing Partner of PRESIDENT CONSULT, greeted the RBCC members and thanked the RBCC for the opportunities it provided for communication and collaboration between Russian and British entrepreneurs.
We would like once again to draw your attention to the position of the Supreme Court authorities concerning the issue of possibility of an in-gratis transfer of property among the principal and subsidiary companies.
The existing earlier arbitration court practice which permitted a possibility of entering into in-gratis transactions among commercial companies was developed and supported by the Presidium of the Supreme Arbitration Court of the Russian Federation. The following legal attitudes have been formed:
Implemented on 30 September 2013 Changes to Civil Сode No. 260-FS became effective on 01 November 2013 and refers to Chapter VI, Part III, of the document (International Private Law). Hereafter are the most important changes.
Back referencing option has been extended (talking about situations when RF Legislation refers to the foreign legislation, with it having no direct regulation, but referring back to RF or the third country legislation): back referencing is to be accepted when foreign legislation refers to RF legislation defining the status of a natural person. (Art. 1190 RF Civil Code)
Changes refer to the content of the foreign law norms identification when applied in RF Court: when engaged into operation in RF Courts foreign legislation is no longer to be proven by the parties, but to be presented to the Court. (Art.1191 RF Civil Code).
The Reservation to the public order, by which the norms of foreign legislation are not to be applied in case there might be a contradiction of consequences to the Rule of RF Law; it has been extended with the notion of a relationship pattern being complicated with the foreign elements; consideration of this pattern expands the discretion of the court (Art. 1193 RF Civil Code)
Norms referring to the application of law on legal entities has been changed; creditors are able to choose the applicable legislation to prosecute for its obligations the founders (or participants) of the foreign organization operating in Russia, (Article 1202 RF Civil Code); when establishing the legal entity, parties will be able to choose the applicable legislation to regulate their relationship (Art. 1214 RF Civil Code).
Parties legally bound by the property relationship will be able to choose the legislation applied when the right of ownership to movable property arises and terminates (Article 1205, 1205.1, 1206, RF Civil Code)