Individuals-tax residents as controlling persons of foreign companies

The article focuses on current topic in the field of taxation - tax residence of individuals and special rules implemented in the national tax legislation of the Russian Federation - controlled foreign companies. The rules for determining the status of tax residence are one of the key issues in the field of taxation of individuals in the Russian Federation. The increase in the complexity of tax legislation due to the introduction of new rules on controlled foreign companies (hereinafter the CFC) is perceived as an increase in the degree of legal uncertainty, and therefore the emergence of new tax risks. In order to reduce the tax burden, residents of the Russian Federation use international tax planning schemes that are not subject to the national tax legislation of the Russian Federation by distributing assets in different tax jurisdictions. After the introduced norms (chapter 3.4 of the Tax Code of the Russian Federation) in 2015, the schemes of conduct of international commerce underwent radical changes. Today, the use of offshore companies in structures is high-risk, punishable and in most cases economically unprofitable from the tax point of view. It should be noted that effective control by tax authorities requires the exchange of tax information with many foreign jurisdictions (including offshore zones) is produced automatically. It should be noted that effective control by tax authorities requires the exchange of tax information with many foreign jurisdictions (including offshore zones) is produced automatically.