Controlled foreign companies of Russian residents in the context of world trends

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Abstract

The subject of this article is financial relations of the state and its tax residents with foreign assets (stock), as well as control over such companies through various legal mechanisms. The authors examined the main global trends in the development of legislation on controlled foreign corporations, as well as characteristics of tax systems that may contribute to such norms introduction. It was found that implementation of international multilateral agreements such as CRS MCAA and CBC MCAA in the field of tax control enhances development of anti-offshore regulation, including legislation on controlled foreign corporations. Particular attention is paid to the comparative legal analysis of the controlled foreign companies’ (CFC) rules in 15 jurisdictions, including the Russian Federation and identification of similar and specific rules. As a result of the research, the authors came to the conclusion that Russia is following the world trends, although at this stage it is not the country that forms them. In the future, to successfully apply the CFC legislation in the Russian Federation, it will be necessary to improve the existing norms , increase the efficiency of tax administration and improve the legal status of taxpayers.

About the authors

Evgenia E. Frolova

Peoples’ Friendship University of Russia (RUDN University)

Author for correspondence.
Email: frolova_ee@rudn.ru
ORCID iD: 0000-0002-1852-0085

Doctor of Legal Sciences, Honored Lawyer of the Russian Federation, Full Professior, Head of the Department of Civil Law and Procedural Law and Private International Law, Law Institute

6 Miklukho-Maklaya str., Moscow, 117198, Russian Federation

Ekaterina A. Tsepova

Peoples’ Friendship University of Russia (RUDN University)

Email: tsepova.ekaterina@gmail.com
ORCID iD: 0000-0001-8147-7633

Candidate of Legal Sciences, Senior Lecturer of the Department of Civil Law and Procedural Law and Private International Law, Law Institute

6 Miklukho-Maklaya str., Moscow, 117198, Russian Federation

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Copyright (c) 2021 Frolova E.E., Tsepova E.A.

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