Business breakfast: Life after amnesty of the capital: current problems of deoffshorization and foreign currency control rules
Speaking engagement
Anastasia Evtushenko BGP Litigation associate
Organizer: BGP Litigation
Location: Moscow, World Trade Center
Registration / Information: Kamilla Goncharova

At the business breakfast BGP Litigation associates reviewed the current foreign currency control rules applicable to private banking customers, expanded on the CFC rules being of current interest for foreign companies’ owners and explained practical aspects of automatic information exchange.

The first block of business breakfast was dedicated to the foreign currency control issues for private banking customers. BGP Litigation associates explained in detail the requirements for foreign accounts, their opening and main risks of their use and provided the criteria for the legal funds placement as required by law. The attendees got to know the requirements for reporting on foreign accounts and liability for foreign currency control offences.

In the second block, BGP Litigation associates analysed the practical aspects of automatic information exchange within CRS (Common Reporting Standard). They outlined how automatic exchange would differ from information exchange upon request, how the information would be exchanged within CRS in practice and what information would be transferred automatically.

The third block of business breakfast concerned the important aspects of the CFC rules and potential strategies for foreign companies’ owners. BGP Litigation associates described in detail a mechanism for filing notices, conditions for exemption of CFC profit from taxation and CFC profit calculation methods. The attendees got to know the conditions for application of soft procedure for CFC liquidation with tax exemption, analysed algorithm of CFC strategy selection and possible solutions for those who decided to keep a foreign company in the ownership structure.

The business breakfast was attended by the representatives of the major Russian companies, banks and family offices. The event was practically-oriented, which allowed the attendees to receive answers to the questions of their concern and to take part in the discussion touching upon disputable issues of application of the deoffshorization and foreign currency control rules.