The Kremlin is saving business from crisis: ‘stifling’ everyone who's still breathing

The Kremlin is saving business from crisis: ‘stifling’ everyone who's still breathing

Tax on bank deposits is unlikely to be effective

- The effectiveness of innovations in tax legislation depends on the quantitative index of tax control subjects, which are covered by these regulations," says Mikhail Begunov, managing partner of Tax Compliance law firm. - Thus, the increase in the tax rate on dividends, withdrawn in offshore jurisdictions, will mainly affect joint stock holdings, which own their stakes through transit companies in countries where the rules of the agreement on avoiding double taxation.

"Svobodnaya pressa": - The Russians took the introduction of the tax on dividends positively: ‘let's shake down the oligarchs and financiers’ – they say. On the contrary, nobody is interested in paying a 13% tax on bank deposits.

- You're right. As for the tax on interest income on individual deposits over 1 million rubles, this will not be an effective anti-crisis measure. We will be able to realistically evaluate the results of the undertaken actions only in 2021, and at the moment it is possible to maintain stability in the economy only by means of reserve funds.

The government's actions to support small and medium-sized businesses (including the provision of interest-free loans) will at least make it possible to pay tax arrears after tax holidays.

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Mikhail Begunov

Major specialisations

Pharmaceuticals, FMCG, Information technology, Manufacturing companies

Member of the Chamber of Tax Consultants, Lawyer at the Moscow Chamber of Advocates

Biography