#2. All in Good Time

Dear readers,

This is a new spring issue of our corporate edition “Korpus Prava.Analytics”.

There is time for everything. Spring replaces winter, new amendments to laws replace the old ones, property is transferred to new owners, and shareholders alternately replace each other. Time comes for everything. Every day we face new urgent issues, which we are trying to find the right answer to.

We devoted this issue to the inheritance of property abroad and minority shareholders. Our Leading Lawyer Tatiana Frolova has prepared an article, in which she reveals the main procedure for inheriting property abroad, examines the nuances of the legislation in European countries and gives recommendations to the heirs. Pay attention to this topic, since it is very relevant.

Our Junior Lawyer Roman Moskovskikh elaborates on the topic of a healthy corporate climate in Russia and pays attention to the relations between shareholders (minority and majority). In the pages of our edition you will find out why minority shareholders are considered a weak link in the corporate relations system, what are the aspects in the field of implementation of the rights of minority shareholders and whether the shareholder’s authorities depend on the size of the stock of shares.

Business is a very dynamic sphere, and it is difficult to predict what new challenges we will face in the future. Today we again write about the law on controlled foreign companies and explain the duties of the tax resident of the Russian Federation with respect to participation in a foreign company.

We could not pass by the relevant topic — the bankruptcy of a legal entity. Our experts introduce you to a number of innovations aimed at ensuring the rights and legitimate interests of creditors in cases of bankruptcy of legal entities.

Take care of your business, take care of your time!

See you next time in the pages of “Korpus Prava.Analytics”!

Artem Paleev
Managing Partner
Korpus Prava

CONTENTS

Subsidiary Liability of Controlling Persons at Bankruptcy

The notion of a "controlling person" established by the Federal Law "On Bankruptcy" is quite broad, and its definition, with a sufficient evidence basis, may include a wide range of persons - participants, shareholders, general director, its deputies, members of the board of directors, chief accountant, beneficial owner, as well as other persons.

Roman Moskovskikh

Lawyer

Law and Tax

Korpus Prava (Russia)

Minorities of All Countries, Unite!

As it is known, in the system of corporate relations the central player is the shareholder. In fact, all corporate legislation is, to one degree or another, aimed at ensuring the shareholder's rights for the development of a healthy corporate climate in Russia. Russian corporate legislation is currently experiencing a period of rapid development. Numerous innovations in the field of protection of the shareholders’ rights confirm this fact.

Svetlana Sviridenkova

Deputy Director

Audit Practice

Korpus Prava (Russia)

Same Old Story. Unified Social Tax

As we all know, from 2017 tax authorities have resumed the administration of insurance premiums, for which reason budget classification codes and the form of insurance premiums calculation have been changed. There are many questions indeed, because any changes create a misunderstanding between the administrative authority and the payer.

Igor Chaika

Ex-Managing Director

Audit Practice

Korpus Prava (Russia)

Exchange Differences

Exchange differences arise in accounting and tax accounting, and also affect the amount of taxes of the organization. The purpose of this article is to consider the procedure of the impact of exchange differences on values of assets and liabilities in accounting, on the VAT tax base and the tax base for income tax as well as on the profit of CFCs.

Anna Senchenko, LL. M.

Leading Lawyer

Tax and Legal Practice

Korpus Prava (Russia)

Reconnaissance in Force

It has been three years since the Law On Controlled Foreign Companies was adopted. The law has become an integral part of the Tax Code of the Russian Federation. Many things have changed for the past three years. In the course of adoption of amendments to the law, certain provisions of laws on controlled foreign companies had to be changed.

Tatiana Frolova

Leading Lawyer

Korpus Prava Private Wealth

Inheritance of Property Abroad

Modern civil law system provides two options of transfer of property of the deceased owner to his/her heirs. If the person has not made any will, his/her property will be transferred to his/her heirs in the manner provided for inheritance by law.