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December 2019 (published: 18.12.2019)
Number 4(39)
Home > Issue > Deoffshorization of the economy of the Russian Federation
and ways to solve the problem
Emirov N.D., Primack T.A.
The purpose of this study is the problems of the Russian economy associated with the export of capital outside Russia. The main problem is the reduction of the tax base, and as a consequence, the state budget does not receive enough money that could be used to solve social problems in the first place. When withdrawing capital through offshore schemes, including through the so-called "gray" schemes, the Federal budget of Russia does not receive a significant amount of tax deductions, and Russian enterprises receive money to invest in their own capital. It is impossible to fight against Offshores because they operate within the legal framework and their activities are recognized by almost all countries of the world. It is impossible to prohibit offshore companies from attracting foreign capital and changing their tax policy of a sovereign state. However, to ensure the security of the national economies of the world, it is necessary to strengthen the transparency of offshore countries, which will make it possible to reduce at least if not net investment, then capital withdrawn from other countries illegally. To this end, international cooperation and financial oversight by international and state organizations should be established. Determining the reason for the departure of business offshore, can help to establish the tax and legal system and stimulate the return of business to the national economy, thereby increasing its security. The authors propose a priority for customs authorities in implementing currency control to make a pre-emptive counter-schemes, illegal withdrawal of capital abroad based on the development of mechanisms of risk management in the performance of control and Supervisory functions of the FCS.
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Keywords: offshore, national economy, foreign direct investment, deoffshorization, foreign economic activity, state control, currency control.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
UDC 336
Deoffshorization of the economy of the Russian Federation
and ways to solve the problem
The purpose of this study is the problems of the Russian economy associated with the export of capital outside Russia. The main problem is the reduction of the tax base, and as a consequence, the state budget does not receive enough money that could be used to solve social problems in the first place. When withdrawing capital through offshore schemes, including through the so-called "gray" schemes, the Federal budget of Russia does not receive a significant amount of tax deductions, and Russian enterprises receive money to invest in their own capital. It is impossible to fight against Offshores because they operate within the legal framework and their activities are recognized by almost all countries of the world. It is impossible to prohibit offshore companies from attracting foreign capital and changing their tax policy of a sovereign state. However, to ensure the security of the national economies of the world, it is necessary to strengthen the transparency of offshore countries, which will make it possible to reduce at least if not net investment, then capital withdrawn from other countries illegally. To this end, international cooperation and financial oversight by international and state organizations should be established. Determining the reason for the departure of business offshore, can help to establish the tax and legal system and stimulate the return of business to the national economy, thereby increasing its security. The authors propose a priority for customs authorities in implementing currency control to make a pre-emptive counter-schemes, illegal withdrawal of capital abroad based on the development of mechanisms of risk management in the performance of control and Supervisory functions of the FCS.
Read the full article
Keywords: offshore, national economy, foreign direct investment, deoffshorization, foreign economic activity, state control, currency control.
DOI 10.17586/2310-1172-2019-12-4-136-141