Sanctions and new laws: what risks businesses have

Sanctions and new laws: what risks businesses have

Pravo.ru published an article on sanctions and new laws. In this article, Tax Compliance partner Andrei Solomyanyi provided expert commentary.

During the roundtable discussion at the event organized by Pravo.ru at the St. Petersburg International Legal Forum, Tax Compliance partner Andrey Solomyanyi spoke on "Tax structuring - 2023: tips on structuring business under the sanctions" and spoke about the tax structuring of business in the current year.

As participants of the round table emphasized, the risks can be successfully managed, if this attention to issues of legality is included into the business plan of the company. It is necessary to establish a system of internal control, which will minimize possible violations and detect them in a timely manner. In addition, experts recommend having proven legal partners who can promptly assist in solving problems that may arise.

One of the key moments in the management of legal risks is cooperation and constructive dialogue with the regulators. Companies must be willing to cooperate and be open, provide all necessary documents and information and give detailed explanations and justifications. This is the only way to achieve a fair and rapid resolution of the dispute.

The expert identified three friendly tax jurisdictions: Serbia, Hong Kong, UAE. "As for Serbia, it has a low tax burden and it is, in fact, the only friendly state in Europe. The country has not yet imposed sanctions, but it is uncertain what decision it will take on restrictive measures amid pressure. In this respect, the UAE is a more attractive jurisdiction. But Dubai also has its disadvantages: the cost of opening and servicing a business. Of course, the advantages of Hong Kong is that you can open a business there without personal presence. Considering these features, these three jurisdictions are the most popular in terms of tax structuring of business.



You can read the full article here.