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CFC tax law, number of other laws restrict use of offshore companies – Hetmantsev about Pandora Papers
KYIV. Oct 5 (Interfax-Ukraine) – Adoption of legislation on taxation of controlled foreign companies (CFCs) in the so-called antiBEPS law (Law No. 466-IX) and a number of other legislative changes restrict the use of the offshore mechanism, including by President Volodymyr Zelensky, head of the parliamentary committee on finance, tax and customs policy Danylo Hetmantsev said, commenting on the Pandora Papers investigation.
"In the entertaining reading of Pandora Papers, in part of the heartbreaking story about our president and his former ‘offshores,’ one important detail is missing," he wrote in his Telegram channel on Monday.
"It was Zelensky’s team, a little more than six months after Zelensky came to power and sold the mentioned offshore companies – in January 2020, adopted the first anti-offshore law (antiBEPS), which imposed taxes on controlled foreign companies (in common people, CFCs or offshore companies), improved the regulation of transfer pricing, expanded the concept of foreign representation and taxed transactions for the sale of foreign assets abroad (remember ‘Leninska Kuznia’?), and a little earlier adopted laws for the automatic exchange of tax information about our residents with 100 countries of the world," the MP said.
At the same time, Speaker of the Parliament Dmytro Razumkov recalled that the Verkhovna Rada supported the postponement of the taxation period for transactions with CFCs until 2023.
"I want to thank head of the committee on finance, tax and customs policy Hetmantsev for the hot explanations on the tough anti-offshore policy of the state, but I remind you of the decision of his own committee to postpone the taxation period for transactions with controlled foreign companies (offshore companies) until January 1, 2023. Such a decision was voted on by the committee on May 13, 2021," Razumkov wrote in his Telegram channel.
In the film "Offshore 95" of the Slidstvo.Info project, shown the day before, in particular, it is about the receipt of $40 million from companies related to businessman Ihor Kolomoisky since 2012 by offshore companies associated with the government.
The film is based on the Pandora Papers investigation by the International Consortium of Investigative Journalism (ICIJ), which uncovers the offshore financial transactions of more than 30 former and current leaders of the world and more than 300 high-ranking government officials. Over 600 journalists from different countries examined 11.9 million offshore documents throughout the year.
