A structure works
when its tax treatment is aligned

01

Facts first, jurisdiction second

Incorporating a company does not by itself relocate its management, functions or profits. We map the tax residence of individuals and entities, the ownership chain, decision-making, employees, assets, contracts, bank accounts and actual cash flows. For each element, we identify the relevant jurisdictions, taxes, reporting obligations and potential dispute exposure.

Individuals

Residence, citizenship, day count, permanent home, family and centre of vital interests

Entities

Place of incorporation, effective management, permanent establishment and substance

Ownership

Direct and indirect interests, trusts, foundations and de facto control

Income

Source, recipient, beneficial ownership and the applicable treaty

Reporting

CFC filings, CRS, accounts, assets and local tax returns

02

CFC status is not determined by shareholding alone

For a Russian tax resident, we examine the ownership percentage, interests held jointly with related parties, de facto control and rights in foreign arrangements without legal personality. We separately assess when profits are recognised, whether an exemption applies, the evidential value of financial statements and audit reports, foreign taxes paid and the applicable notification deadlines.

03

Personal and corporate tax residence require separate analyses

For an individual, the travel calendar is only the starting point: domestic rules may also test the availability of a home, family and employment ties, and the centre of vital interests. For an entity, the analysis considers its place of management, directors, board process, signatory authority and actual functions. Where dual residence arises, the resolution depends on the terms and procedures of the applicable tax treaty.

04

A treaty rate is the conclusion, not the starting assumption

For dividends, interest, royalties, services and capital gains, we test the source country’s domestic law, the recipient’s tax residence, whether the relevant treaty is in force and applies to the income, beneficial ownership, the principal-purpose test and any other limitation on benefits. We then confirm the procedure for obtaining relief. Routing income formally through an intermediary with no corresponding functions or risk increases the likelihood that treaty relief will be denied.

Source

Which jurisdiction may tax the income under its domestic law?

Residence

Who is the recipient for tax purposes, and where is that person resident?

Treaty

Is the treaty in force, and does it apply to the income and period concerned?

Beneficial owner

Who controls the income and bears the corresponding economic risk?

Procedure

Residence certificate, prescribed forms, disclosures and recovery of withholding tax

05

CRS begins with classifying the account holder and controlling persons

A financial institution determines the tax residence of the account holder, whether an entity is a financial institution or a non-financial entity, and who its controlling persons are. Self-certifications are tested against KYC records, addresses, telephone numbers, powers of attorney and account activity. We prepare classifications and explanations that are consistent with the governing documents, the commercial facts and the relevant tax returns.

06

Cross-border disputes often begin where contracts and functions diverge

Intragroup services, financing, intellectual property, guarantees, trading arrangements and restructurings are tested against their business purpose, the parties’ functions, assets and risks, transfer-pricing support and actual performance. When the Russian Federal Tax Service or a foreign authority requests information, we build a chronology, an evidence file and a coordinated position for every affected jurisdiction.

07

Our process

1. 01

   Interview the relevant people and map the entities, arrangements, accounts, assets and contracts.

2. 02

   Prepare a matrix of jurisdictions, taxes, filings, deadlines and responsible persons.

3. 03

   Analyse CFC rules, tax residence, treaty entitlement, substance, CRS and currency-control requirements.

4. 04

   Compare the available options: retain the structure, restructure it, wind it down or relocate specific functions.

5. 05

   Implement the chosen model, align bank disclosures and establish an annual compliance calendar.