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Giants Nickel production do not want to withdraw Finance from offshore

7 May 2014
Giants Nickel production do not want to withdraw Finance from offshore

The new bill of the Ministry of Finance of the Russian Federation on the withdrawal of assets from tax havens to raise the capacity of their own state and stabilization of the financial situation in the country not too inspired the owners of the industrial giants. Several leading companies, among which were well-known worldwide concern for production of Nickel and some other nonferrous metals named Norilsk Nickel has prepared a list of comments and their own innovative additions to the law. Incidentally it is worth noting that such observations, in fact, completely change the very content of the bill and distort its basic purpose. Along with the Nickel giant in preparing the comments managed to participate RUSAL, several well-known banks, «Sollers» and many other important state enterprises. Now the new draft law is at the stage of active discussion and given to pre-reading of many financial groups, and leaders of business. According to Pavel Gagarin, who is currently presiding over the working group, the whole list of additions from representatives of the business elite will be forwarded for detailed analysis in the financial Ministry. For this purpose the newly created special working group under the supervision of Paul Gagarin, its main task is to find ways to minimize tax and financial risks for all project participants. The essence of the law on the elimination of the shadows of the greater part of the offshore income is in complete control of the state over the holders of a significant number of shares in any foreign companies. Those who have owned at least ten percent of the securities of any foreign company invited to register to the tax office and volunteer to pay all the necessary taxes on undistributed profits. Many industry representatives and «Norilsk Nickel» including one of the first remarks to the bill, said too high a threshold of interest and proposed to increase its equity participation in business activities of foreign companies with ten to fifty percent. By the way the reason for this behavior was not personal animosity of the Russian luminaries from business to tax penalties, and especially the organization of some foreign companies simply refuse to provide full financial statements of the small shareholder. For many foreign enterprises, such information falls into the category of sensitive fields.

6 May 2014
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