Russia’s Investigative Committee has called for a legislative ban on business that serves no other purpose other than obtaining tax exemptions in offshore jurisdictions.
The Committee also proposed the imposition of criminal liability on such business, RAPSI quoted senior inspector Giorgy Smirnov as saying.
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Smirnov said that this move will target entities that serve no purpose other than enabling tax evasion.
The issue with offshore tax havens was raised by Russian president Vladimir Putin in June during the G8 summit, which highlighted that Russia, would tackle the problem by drawing up a national plan to deal with such tax havens.
Putin said: "Legal entity X is registered in Cyprus, and then it turns out that what is registered in Cyprus is a subsidiary of what is registered on the Cayman Islands. "
Putin said that in order to tackle the offshore problem firstly it is required to disclose the end beneficiary and secondly there must be unified rules of offshore zones’ operation.
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By GlobalDataLastly, he added that no vague tax-evading tools should be used to address offshore tax issues.
