Liberal Democratic Party of Russia introduces the anti-offshore proposal in the State Duma

Liberal Democratic Party of Russia (LDPR) members introduces the anti-offshore proposal in the State Duma offering to fight deoffshorization of Russian business with radical administrative measures.

Lawmakers demand ban companies with offshore owners receive government contracts, participate in government auctions, in privatization, to receive funds from the budget and acquire the shares of companies that have strategic importance, as well as export of Russian goods and technology included in the list approved by the government, the newspaper “Izvestiya” says.

The anti-offshore proposal involves amendments to the existing legislation, in particular the Federal Law “On combating the legitimization (laundering) of crime proceeds", Budget Code of the RF, the Federal Law "On banks and banking activities", etc.

The changes and amendments to legislation aim to formalize in law definitions of "offshore company" and "company controlled by an offshore company". The term "offshore company" means a legal entity registered in tax haven, the term "company controlled by an offshore company" means a Russian legal entity co-owned by an offshore company. The label of an offshore will be assigned to a Joint Stock Company with more than 10% of shares owned by offshore companies. For other legal forms the higher rate is proposed - more than 30% of the share capital, the newspaper "Izvestia" adds.