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Standards Developed For Determining The Beneficiary Owner Of Income
Russia's Federal Tax Service has issued general guidelines to be used in disputes where the Tax Service argues that a tax treaty is being misused by a taxpayer.
The Tax Service is fighting cases in which taxes are avoided at the country of origin for income by the resident of another state as a frontman for another entity who is in fact that beneficiary of the income.
In such cases, the Service will use the concept of "a person having the actual right to the income (the beneficial owner)." This concept is to be applied based on the goals and objectives of international treaties on the avoidance of double taxation.
In the proposed review, the following is noted:
This is according to Federal Tax Service Letter of April 28, 2013 No. SA-4-9 / 8285 @.
Translated by Alinga Consulting Group.
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