BGP Litigation associate Natalia Yurchenkova commented to Interfax on the court dispute on taxes on dividends for the Swiss co-owner company

«In the case of the application of the concept of “beneficial ownership right on income”, the court practice is mainly negative for the taxpayers, adds BGP Litigation associate Natalia Yurchenkova. 

For example, in the case of Severstal, PJSC (MOEX: CHMF) the court took the side of the tax authorities in the case on the dividend distributed to the Cypriot shareholders, agreeing that the Cypriot company transferred money in transit to the offshore in the BVI, hence for these payments the reduced tax rate should not be applied. In this case, the tax authorities were not able to identify the transit nature of dividend payments, because the recipient was the beneficial owner of the income», says N. Yurchenkova».