Business breakfast: Pressing Issues of Deoffshorization and Foreign Exchange Control
Speaking engagement
Anastasia Evtushenko BGP Litigation associate
11.10.16
Organizer: BGP Litigation
Location: Moscow, Marriott Royal Aurora Hotel
Topic / Program:

10:00 – Registration

10:30 – Overview of key rules on foreign exchange control. Foreign bank accounts: bookkeeping and reporting

11:30 – Automatic information exchange: when a secret becomes clear

12:30 – Coffee/lunch break

13:00 – Controlled Foreign Companies. What should owners do? Choice of strategies

14:00 – Foreign structures in the era of deoffshorization. Is there a way out?

15:00 – Q&A

Registration / Information: Kamilla Goncharova

The seminar was attended by more than 60 executives and specialists from investment funds, major banks, family offices, holding companies and leading organizations in various industries.

At the event Anastasia Evtushenko answered the following key questions from the attendees: what should be done with foreign bank accounts in relation to which amnesty has not been granted? For which accounts does notification not need to be filed? How does the exchange of information take place? How can a controlled foreign company be liquidated without tax consequences? How should a controlled foreign company's profits be calculated if the foreign company is needed in a structure?

The requirements applicable to foreign bank accounts, the opening of such accounts, the main risks inherent in their use, and the criteria used to determine whether transfers of funds are legal or not were discussed in detail in the context of an overview of the current rules on currency control. The attendees learned about the reporting requirements applicable to foreign bank accounts, and liability for violations of the currency control regulations.

In the presentation "Automatic information exchange: when a secret becomes clear. How it works" Anastasia discussed practical aspects of the exchange of information under the Common Reporting Standard (CRS). She addressed how automatic exchange of information differs from exchange of information upon request, how exchange of information under CRS works in practice, and what information is transferred automatically. 

The presentation "The Rules on CFCs. What should owners of foreign companies do? Review of strategies" covered important aspects of the rules on CFCs and potential strategies for owners of foreign companies. The notification procedure, the eligibility criteria for CFCs to obtain corporate income tax relief, and guidelines for calculating the profits of CFCs were discussed in detail. The attendees learned about conditions under which CFCs can be wound up on favorable terms and were provided an algorithm for selecting a strategy for CFCs. Possible solutions for those who decide to maintain a foreign structure were also suggested. 

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