THE FIRST COMPANY WAS FINED FOR BREACHING THE CONTROLLED FOREIGN COMPANIES’ LAW

ince 1 January 2015, Controlled foreign companies’ law came into force. Under the law Russian tax residents and interested persons, that owns a big share of stock (more than 10 percent) of the foreign companies, or that have separated units located abroad (without creating of legal entity) are obliged to disclose such information to tax authorities.Russian airline company “UTAir” became the first company, which was fined of 475 thousands roubles (more than 6500 Euro), because of the non-compliance with the form of notification – according to the law notification shall be brought in electronic format.To avoid fines, it is important to inform state authorities in the correct form on time and full about the own shares of the foreign companies and separated units located abroad.