Taxes and Taxation - rubric TAXATION OF PARTICIPANTS OF FOREIGN ECONOMIC ACTIVITIES

Abstract: One of the key problems of international legal regulation in the sphere of avoiding double taxation is the various correlation of norms of international and national law in every particular state. The author of this article concludes, that Russia is one of the countries, where the concept of correlation is monist, and provides for priority of international law over national normative legal acts. In fact, however, the provisions of legislation of the Russian Federation, namely the Tax Code of the Russian Federation, have the priority over the Constitution of the Russian Federation, that is why Russia has some problems related to application of normative legal acts of supreme legal power.

Abstract: In this article the author reviews some existing conflicts in the Russian legislation in the sphere of regulation of contracts for the provision of foreign personnel from the foreign companies to their affiliated and representative offices, accredited in the Russian Federation.

Abstract: The article is devoted to specific features of participation by the Russian companies in the various forms of joint ventures abroad, and the issues of taxation of income from such ventures. In particular, the author comes to a conclusion that the income of the Russian organization from the participation in the foreign LLP cannot be regarded as dividends for the purpose of taxation in Russia, and offers amendments into the Tax Code of the Russian Federation. Keywords: joint venture, income, taxation, partnership, tax agreements, dividends, Tax Code.

Abstract: Preliminary agreements on price-formation may become one of the most efficient solutions, if the transnational companies decide to apply transfer prices. The article includes basic information on application of such agreements in the «Big 8» states, the «BRIC» states, and the transforming economy states. The author comments upon some provisions of the draft for amendments into the Tax Code of the Russian Federation, which are aimed to improve the price formation principles for the taxation purposes. Keywords: tax, income, double taxation, tax control, transfer price-formation, agreement, draft, Tax Code, preliminary control.

Abstract: The review includes opinions of the ViceChairman of the Committee on Budgets and Taxes of the State Duma of the Federal Assembly of the Russian Federation Andrey Makarov, Aide to the Head of the Department of Tax and Customs and Tariffs Policy of the Ministry of Finances of the Russian Federation Sergey Razgulin, expert evalua tions of S.P. Tkachenko, (Rusimport), N.V. Ivanova (“Mineral and Chemical Company EuroChim”, Jsc), A.Kartoshkina (“AK Atomic – Audit, LTD) Keywords: tax, VAT, remuneration, reform, Code,expertise

Keywords: nalogi, mezhdunarodnyi, akt, dogovor, soglashenie, Velikobritaniya, Rossiya, pravonarusheniya, vzaimodeistvie

DOI: 10.7256/2454-065X.2018.10.27636

Abstract: This is a nettlesome issue about the tax regulation of the development of tax base in transnational companies. Information asymmetry is an essential factor that significantly affects the process of tax regulation. This category is peculiar for economy in general but not specific for particular national economy, however, the cause of specifics of tax regulation is in many ways conditioned by the attempts to eliminate drawbacks of the information available. In this article Ardashev analyzes the problem of information asymmetry in tax relations as well as the means of eliminating its consequences in the process of regulating the development of tax bases in groups of companies. Ardashev also gives practical recommendations on how to advance the rules that regulate transfer pricing in Russia. Within the framework of the research, the author has applied the observation method to trace back the process of using the rules that regulate the development of tax bases, the comparison method to cmpare particular aspects of national rules, and general logical methods. The novelty of the research is caused by the fact that the author defines the influence of information asymmetry on tax relations and rules that regulate the development of tax bases in trans-national companies as well as the rules regulating the issues of transfer pricing. Ardashev also gives evaluation of whether it is possible to eliminate the drawbacks of information and describes possible consequences thereof. He also offers a classification of the methods that can be used to cushion the consequences of incomplete information and proves that the quantity and quality of available information significantly affect the final form of the rules themselves.

Keywords: arm's length principle, safe harbour, corporate group, profit shifting, tax base, base erosion, tax regulation, multinational enterprise, transfer pricing, information asymmetry

DOI: 10.7256/2454-065X.2019.4.29666

Abstract: The subject of the research is the development of taxable bases as part of dealings concluded with subsidiary economic entities of trans-national companies about intangible assets. The aim of the research is to develop recommendations on how to manage the development of taxable bases in intangible assets dealings concluded by trans-national companies in order to prevent international profit shifting and base erosion as well as to solve an important economic task of preservation of Russia's taxable base under the conditions of international tax competition. Within the framework of the research, Ardashev has applied the method of observation over practical implementation of rules that regulate taxable base development. He has also compared particular aspects of national rules with their foreign compatibles and has used other general-logic methods. Ardashev has also carried out empirical research of data collected from public sources. The novelty of the research is caused by the fact that the author raises the problem of regulating taxable base development in the structures of trans-national companies. He offers recommendations on how to choose formal and essential approaches to such regulation. This has been done based on the example of intangible assets dealings because these are the most difficult dealings when it comes to pricing based on the arm's length principle. The researcher also describes grounds for the distribution of the legislative pricing practice and creation of 'safe harbors' to non-intangible assets dealings concluded by trans-national companies.

Keywords: license fee, multinational corporation, royalty, tax regulation, arm's length principle, intangible assets, safe harbor, transfer pricing, base errosion, profit shifting

DOI: 10.7256/2454-065X.2023.3.35637

Abstract: The method of transaction value with imported goods is the main method for declaring the customs value. This method defines the customs value as the transaction value increased by the amount of additional payments provided for in Article 40 of the EAEU Customs Code. However, in practice, there are a number of controversial cases regarding the inclusion of royalties.The goal is to identify the main problems of accounting for royalties in the structure of customs value, as well as to suggest ways to solve the problems. The following tasks were highlighted in the work: 1)analyze the legislative framework of the EAEU concerning the procedure for accounting for royalties in the customs value; 2) analyze the judicial practice concerning the application of the method for the value of the transaction with imported goods (method 1) and accounting for royalties when using this method; 3) analyze scientific articles concerning the accounting of royalties in the customs value; 4) based on the collected information, identify the main problems of accounting for royalties in the customs value.5) propose ways to solve the problem of accounting for royalties in the formation of customs value. The object of the study is the generated customs value when applying the method for the value of the transaction with imported goods. The subject of the study is royalties in the structure of customs value. The main results of the study are the identification of problems in accounting for royalties in the customs value, as well as the identification of areas for improving the tax accounting of royalties to reduce the tax risks of taxpayers and the state in cross-border trade. In the course of the study, it was proposed to stimulate the development of a unified register of intellectual property objects, to stimulate interaction between the Federal Customs Service of Russia and Rospatent in order to create a "declarant dossier". It was proposed to amend legislative acts regarding the clarification of the amount of royalties when forming the customs value, as well as the interpretation of such a key factor as "the sale must be carried out for export to the territory of the EAEU."

Keywords: customs value, royalties, customs territory, value added tax, income tax, foreign economic agreement, license agreement, import, tax accounting, quality control

DOI: 10.7256/2454-065X.2013.4.8075

DOI: 10.7256/2454-065X.2014.5.11957

Abstract: The article is devoted to the analysis of approaches to defi ning criteria for residency of physical entities and organizations for the purposes of taxation. The author of the article describes peculiarities of avoidance of double taxation with regard to foreign law entities.

Keywords: studies of law, resident, representative establishment, taxation, setoff, entity, obligation, international, foreign, taxpayer.

DOI: 10.7256/2454-065X.2018.7.27629

Abstract: The subject of the research is the VAt tax base created in the process of rendering electronic services by foreign companies in the Russian Federation. The article is devoted to the development of the approach to evaluating the tax base of foreign suppliers of electronic services in the territory of the Russian Federation. Using the data provided by the Federal Tax Service and Central Bank, the authors calculate the bounds of the VAT tax base potential for transborder supplies of electronic services. They also evaluate the degree to which the applicable Russian legislation is observed as well as the correpsondence between the applicable Russian legislation and fundamental principles of VAT, in particular, the principle of neutrality in relation to international service trade. The methodology of the research is based on general logical adn empirical research methods that allow to calculate a potential VAT tax base for digital services rendered by foreign companies in the territory of the Russian Federation and to compare it to a declared one. The authors demonstrate that a potential VAT tax base for eletronic services significantly outstrips a declared one. Moreover, they conclude that exemption from VAT tax in accordance with Subclause 26 of Clause 2 of Article 149 contradicts to the VAT neutrality principle for transborder supplies. Recommendations made on the basis of the research results can be used by tax authorities and tax policy agencies to improve the quality of tax administration and harmonize the rules of taxation of transborder digital services.

Keywords: international taxation, neutrality principle, digital economy, tax administration, VAT, e-commerce, Tax policy, Google tax, tax incentives, the tax base

Abstract: The article is devoted to the peculiarities of the method of tax credit used with reference to tax liabilities of foreign parties to pay corporate income tax and corporate property tax. The author analyzes the list and requirements for the document proving the taxpayer’s right to use the method of tax credit in order to avoid international double taxation. Based on the analysis of law enforcement practice, the author suggests to make certain changes in legislative acts in order to improve the current mechanism of the method of tax credit and to avoid the double taxation.

Keywords: law studies, tax, taxation, tax credit, liability, profit, international, organization, avoidance, agreement.

DOI: 10.7256/2454-065X.2024.1.38960

Abstract: In the article, the author investigates the question of the possibility and necessity of using innovative digital solutions in organizing the procedure of work of tax authorities with taxpayers in terms of applying the 0% rate and reimbursement of value added tax. The relevance of the study is justified by the changed conditions for the application of the VAT refund application procedure, the reduction of the period of desk inspection and the preparation of registers of documents confirming the 0 percent rate through the use of information services of the Federal Tax Service. The research methodology is based on the generalization and analysis of regulatory documents, as well as the practical experience of maritime transport enterprises, customs and tax authorities in terms of digitalization of individual processes. To achieve this goal, the author has considered in detail the new procedure for VAT refund. The legal justification of the procedure and reasons for carrying out tax control measures aimed at confirming the right to apply the 0 percent tax rate and tax deductions is analyzed.The necessity of further transformation of interaction between taxpayers and tax authorities in the direction of the use of digital technologies, including in the organization of tax control, is substantiated. Based on the results of the study, the author made reasonable conclusions about the need for further research and elaboration of issues on the implementation of the possibility of assessing the application of a new declarative procedure for tax refund before filing a value-added tax declaration, the legal status of the "Office – Exporter" service and the possibility of using participants in foreign economic activity providing transshipment and forwarding services in order to form a register documents confirming the 0 percent rate. The improvement of the existing information services of the Federal Tax Service and the introduction into commercial operation of the new service "Exporter's Office" will provide comfortable conditions for tax administration to conscientious taxpayers, reduce the administrative burden, shorten the period of desk inspection, eliminate technical errors and stop intentional actions aimed at illegal VAT refund and the application of the 0% rate.

Keywords: electronic document management, digital economy, tax control measures, tax deductions, cameral tax audit, information services of the Federal Tax Service, tax refund, tax administration, Tax declaration, value added tax

DOI: 10.7256/2454-065X.2019.10.22729

Abstract: The subject of this research is the measure of the tax control for goods and services carried out in Canada. The object is the tax regulations of Canada. The article explores practical implementation of the principle of simplicity of administration in Canada. The study will address the issues of tax control for taxpayers, in particular the means of verification of authenticity of the information in the submitted declarations and the reasons for such checks. Additionally, we will selectively investigate alternative control methods in other countries. The goal of this research is to examine the practical implementation of the principle of simplicity of administration in Canada, as well as analysis of issues of tax control of taxpayers, particularly the ways of checking the validity of the information in the submitted declarations and the reasons for such checks. The work also assesses performance of some alternative control methods in other countries. The result of the analysis revealed that the control system for collection of taxes on goods and services in Canada is effective. The work of the Tax Agency of Canada brings certain tax revenues, despite the various problems with tax evasion and the shadow economy. Ways to check the validity of the information in the submitted declarations is done in such way that it minimizes the number of violations. The verification system is quite flexible and is constantly being improved, in particular using new methods of monitoring the accuracy of the information. We should also mention the legal regulation of control in Canada. The main source is the Act "On excise tax", which particularly stipulates the procedure of verification and validation. Other important sources are judicial precedent, as well as a number of internal instructions of the Tax Agency of Canada, which directly regulate the procedure of inspections. The main conclusions of the study consist in the assessment of the effectiveness of the tax law of Canada. Methods used by the tax Agency bring results, although require improvements and possible revision of the whole system of levying tax on goods and services.

Keywords: tax revenues, goods and services, simplification of the tax system, taxation, taxation Canada, tax, tax control, economy, methods of tax collection, declarations

DOI: 10.7256/2454-065X.2018.2.25360

Abstract: In his article Ivanov touches upon international taxation of foreign economic activity actors. The subject of the research is the problems caused by the dilution of the tax base and profit shifting signified by OECD and the object of the research is the Russian rules for holding operations performed by companies. The author examines such aspects of the topic as controlled foreign corporations, transfer pricing and thin (insufficient) capitalization as well as geographical interests of Russian companies in relation to direct foreign investments. The author pays special attention to the motives that route Russian direct investments to aforesaid jurisdictions. The methodological basis of the research is the theoretical approaches to developing a 'neutral' tax policy in relation to investment activity of multinational companies, Russian tax laws and reports of the Federal Tax Service as well as results of a coordinated research of direct investments performed by the International Monetary Fund. The results of the research include the following conclusions: Russian regulations of intercompany operations are based on international recommendations and allow to control foreign trade transactions that are 'sensitive' for the budget. The stucture of foreign direct investments from the Russian Federation demonstrates understandable business motives and entrepreneur goals that require the government to improve taxation and business conditions of economic, i.e. international, company's activities as well as participation in international exchange of tax information. Coordination efforts applied by OECD create a new legal basis for international taxation that would require modern conditions of business operations.

Keywords: Federal tax service of Russia, de-offshorization, BEPS, FDI, offshore, multinational companies, thin capitalization, transfer pricing, CFC, OECD

DOI: 10.7256/2454-065X.2019.11.31555

Abstract: The subject of this research is the tax mechanisms of incentivizing export activity of the companies of various sectors in the conditions of changing conjecture of the world market. The authors examine different aspects of incentivizing tax measures for expansion of export activity through the systems of tax benefits in form of tax rates reduction regarding separate taxes and fees, or tax exemption on part of the object of taxation, etc. Special attention is given to the possibilities of introduction of special tax regime for export-oriented non-resource companies. Methodological framework is comprised of the following methods of cognition: scientific inquiry, systemic analysis, synthesis, formation of hypotheses, logical modeling, and graphic constructs. The author’s main contribution into the research of this topic lies in the new interpretation of export-oriented activity of the companies for the purpose of their future incentivization as one of the key practical instruments for conducting state regulatory tax policy. The scientific novelty is based on proposal of a new special tax regime for exporting companies with the aim of incentivizing their activity.

Keywords: tax incentives, tax benefits, export development, taxation, tax, export, economics, VAT, export taxes, non-primary export

DOI: 10.7256/2454-065X.2021.3.35950

Abstract: International trade is growing rapidly; a sizable amount of goods is shipped from one country to another on daily basis. Special attention is given to control of the customs value of goods, since the amount of collected customs charges depend on the customs value. The research aims to determine the problems of controlling the customs value of goods and seek the ways to solve them. For achieving this goal, the author set the following tasks: 1) analyze the legal framework of EAEU on assessment of the customs value of imported goods; 2) analyze the case law on application of the methods of determining customs value ; 3) examine the organizational structures for controlling the customs value of goods imported into EAEU; 4) leaning on the accumulated information, outline the key problems of customs value control; 5) develop recommendations for improving the instruments of customs value control of imported goods. The object of this research is the activity of customs authorities within the framework of verification of customs value of imported goods. The subject of this research is the control of the customs value of goods on the example of Russia as EAEU member-state. The main results of this research consist in outlining the problems arising in implementation of customs value control, as well as the highlighting the areas for its improvement. The author offers to amend legislative acts that would consider commission to the freight forwarder, as well as establish a minimum list of documents to confirm transport deductions and commission to the freight forwarder. Recommendations are also made on promoting the development of a unified register of the object of intellectual property, cooperation between the Federal Customs Service of Russia and Federal Service of Intellectual Property (Rospatent) to create a “customs declarant profile” for accurate accounting of license duties. The transparency of pricing data of the customs database along with the information on categorization of the participants of foreign economic activity, were determined as the ways for improving customs control.

Keywords: transport deductions, license agreement, royalties, import, foreign economic agreement, customs territory, customs value, expedition agreement, categorization of foreign trade participants, price data

DOI: 10.7256/2454-065X.2024.1.44214

Abstract: Subject – customs status of goods. The aim is to study the tax and customs status of fish import and of fish products made in the exclusive economic zone of the Russian Federation (hereinafter referred to as the EEZ of the Russian Federation) and the World Ocean. The authors of the study analyze the law enforcement practice, formed over the past few years, what allow them to draw attention to the methodological underdevelopment of a set of issues related to the determination of customs legal relations of fish and fish products imported (manufactured) by Russian fishing vessels (or production of fish products) (hereinafter - Goods) outside the state territory of Russia. Scientific contribution: Development of practical cases to determine the tax and customs consequences of importing fish (catches), produced (caught) in the EEZ of the Russian Federation. Results and conclusions: The results of the study show that the current regulation (norms of the Customs Code of the EAEU) does not allow to make an unambiguous conclusion as to whether such goods should be considered in customs legal relations as "goods of the Union" or as "foreign goods". In connection with the above, it seems relevant to solve the problem related to the development of methodological approaches to determining the status of imported Goods.

Keywords: customs consequences, foreign vessels, Russian vessels, World Ocean, Exclusive Economic Zone, Union goods, VAT, excise duty, import, fish products

DOI: 10.7256/2454-065X.2013.2.62386

Abstract: It is the first time in Russian theory of taxation and taxation law that someone provides a detailed description of a modern theory of residence used in developed tax systems of Western countries. We do not have such a conception in Russian taxation law, this is quite a gap in tax regulation of economic activities and provides numerous opportunities to avoid paying taxes. The Ministry of Finances of the Russian Federation has declared about the need in implementing this concept in the Tax Code of the Russian Federation as the ‘Fundamental Objectives of Taxation Policy in 2013 -2015’. In this regard, the article is of great interest for all who are interested in modern problems of international taxation policy. The author of the article analyzes not only conceptual grounds of tax residency of legal entities, but also summarizes judicial practice of different countries practicing this system of taxation. The author also provides critical commentary about adequacy of this conception in modern high-tech international economy and the epoch of e-commerce.

Keywords: taxes and taxation, residency, taxes, OECD commentary, management and control, tax administration, location, dual taxation, efficient management, avoidance of dual taxation.

DOI: 10.7256/2454-065X.2013.4.62865

Abstract: Within the process of cooperation on tax matters between states, certain sets of rules which are aimed at avoiding international double taxation are developed. The article examines the issue of forming a model rule set to solve the problem of double residency for legal persons. Basing the research on the analysis of international organization’s documents, the author points out the main stages of international tax cooperation. The article provides examples for the model rule formulas, as well as main arguments and reasons for them. The author determined that, within the European economic cooperation, and later in OECD’s work, the main argument used in solving the double residency tax collision was the criteria of place of effective management. The author examines the main approaches to the definition of tax residency of legal entities, based on national Law and practice in Continental Law countries, as well as Common Law countries. The author demonstrates various points of view on defining and interpreting the place of effective management criteria and draws conclusions about the validity of using the substance before form approach in defining tax residency for legal entities using the place of effective management criteria.

Keywords: Jurisprudence, tax resident, double residency of legal entities, fiscal domicile, primary criterion, place of effective management, place of central management and control, the Vertex doctrine, dominance of substance over form

DOI: 10.7256/2454-065X.2014.4.64256

Abstract: The Resolution of the Plenary Assembly of the Supreme Court of Arbitration of Russia ‘On particular issues arising during application of the first part of the Tax Code of the Russian Federation by arbitration courts’ has a whole section devoted to enforced tax collection. However, there are still some practical issues of implementation of tax enforcement that are left beyond the scope of the Plenary Assembly and in any way can’t be solved without making amendments to tax legislation. The author of the present research article views the aspects of tax enforcement listed in Part 3. The author uses methods that are traditionally used in legal researches including the method of comparative legal analysis and the method of systems analysis. The author touches upon the following aspects of tax enforcement: collection of taxes payable before the period of performance of tax notice expires; tax collection by means of monetary funds and other property of a taxpayer and legal collection of taxes payable after reversal of a decision to collect taxes due to the abuse of legal process by tax authorities. The article also contains suggestions on how to solve the aforesaid problems. The author offers to include these suggestions in the Main Directions in Tax Policy 2015.

Keywords: tax collection, tax enforcement, performance of tax obligations, tax payment, free will tax payment, tax notice (request), Tax Code, tax administration, taxes, taxation.

DOI: 10.7256/2454-065X.2014.12.12512

DOI: 10.7256/2454-065X.2014.12.65982

Abstract: The research focuses on the need to create special economic zones in border regions of the Russian Federation. The border areas are particularly important for any country as they play a key role in foreign policy, national security and international relations. The author considers such issues as the sharp increase in the value of border areas that serve as zones of contact with the outside world in the context of liberalization of foreign trade activities and the need to establish on their territories of special economic zones. Historically, in Russia the entire zone of border areas is less dynamic and more depressed than similar territories in other parts of the country. The collapse of the Soviet Union and the emergence of new border areas in Russia further aggravated the situation. Taking the above into account, the paper pays special attention to the mechanism of crediting customs duties for the purpose of economic growth in these areas. The research methods applied in the work on the establishment of SEZs in border regions of the Russian Federation involve analysis and synthesis. The author’s contribution to research in this field has been the development of the concept of establishing of special economic zones in border regions of Russia, and as a result, the social and economic development of the RF subjects adjacent to the RF state border by the proportional allocation of customs duties, the preservation and development of the productive forces, development of natural resources, attracting Russian and foreign investment, and thus reducing the social and economic asymmetries of the RF subjects. The above-mentioned findings and suggestions constitute the novelty and significance of the research.