The majority of investments and credits coming from abroad are from Russian businessmen reinvesting funds from the tax havens of Cyprus, Austria, Luxemburg, the Netherlands, Switzerland, and a number of Caribbean islands. Major Russian companies, as well as ordinary taxpayers, also use similar schemes.
Edward Savulyak, director of the Moscow office of Tax Consulting U.K, an international consulting firm, believes that the amendments, as prepared by the Tax Department at the request of the President, and which limit the privileges specified in the double taxation agreements might lead to an escalation of dishonest business dealings.
Savulyak, in the article “October 2010. Tax Code Amendments Led To Dishonest Business.” claims that excluding non-resident companies that are controlled by Russian beneficiaries from double-taxation agreements would result in more tax evasion.
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