• A
  • A
  • A
  • ABC
  • ABC
  • ABC
  • А
  • А
  • А
  • А
  • А
Regular version of the site

Development of Legal Framework for Controlled Foreign Companies

Student: Muratov Ruslan

Supervisor: Elena Ryabova

Faculty: Faculty of Law

Educational Programme: Financial, Tax and Customs Law (Master)

Year of Graduation: 2019

Appearance of the possibility of free movement of capital from one jurisdiction to another allowed companies incorporated in high taxation states to use low-tax or tax-free jurisdictions to conduct business and, in addition, to reduce a tax burden. One of the anti-avoidance measure is а controlled foreign companies rules, which make possible to spread the payment of dividends to the parent company, that is, to delay the payment of income that will be taxed in the state of tax residency of the parent company. In turn, states adopt CFC rules as an anti-avoidance measure, which may change due to different circumstances. CFC rules are aimed at identifying the actual tax liability of a taxpayer. However, there are situations when CFC rules are applied in a broad approach, that is, for example, a wide scope of persons will fall under the definition of “controlled foreign companies” or “controlling persons”, which may lead to the fact that the conditions for applying CFC rules may arise persons who do not exercise actual control over a foreign company. In this case, CFC rules may worsen a taxpayer’s position. In this regard, there is an abuse of the right of supervisory authorities on application of the anti-avoidance measure. To eliminate such situations, it is necessary to improve the CFC rules by limiting the scope of persons and a delineation of abuse of rights and lawful actions for applying CFC rules.

Student Theses at HSE must be completed in accordance with the University Rules and regulations specified by each educational programme.

Summaries of all theses must be published and made freely available on the HSE website.

The full text of a thesis can be published in open access on the HSE website only if the authoring student (copyright holder) agrees, or, if the thesis was written by a team of students, if all the co-authors (copyright holders) agree. After a thesis is published on the HSE website, it obtains the status of an online publication.

Student theses are objects of copyright and their use is subject to limitations in accordance with the Russian Federation’s law on intellectual property.

In the event that a thesis is quoted or otherwise used, reference to the author’s name and the source of quotation is required.

Search all student theses