Controlled Foreign Companies and Transactions

Abstract

The purpose of the present paper is to highlight specifics of the theory of control in relation to foreign companies and transactions. In accordance with this goal, our paper is aimed at solving a number of tasks: (1) to show the specifics of determining the legal status of a branch of a Russian legal entity opened on the territory of a foreign state or reflect the specifics of the legal regime of its activities; (2) consider individual cases in which notices of the controlled foreign companies should not be provided under the Russian law; (3) consider issues related to the procedure for calculating income tax of controlled foreign companies, in particular, when terminating certain double taxation avoidance agreements with certain unfriendly states; (4) reflect the risks of implementation of controlled transactions, as well as liability for unlawful failure to provide notices of controlled transactions or submission of inaccurate information; (5) address the specifics of importing products of foreign origin as samples, and also consider the need to file notices of controlled transactions with respect to the supply of samples. The methodological basis of the study contains dialectical, systemic and modeling methods.