Open AccessRules for Tax Re-Qualification of Income of Controlled Foreign Companies in BRICS Countries on the Example of Russian and Brazil Approaches
Author(s) -
I. A. Rakov
Publication year - 2021
Publication title -
aktualʹnye problemy rossijskogo prava
Language(s) - English
Resource type - Journals
eISSN - 2782-1862
pISSN - 1994-1471
DOI - 10.17803/1994-1471.2021.133.12.011-023
Subject(s) - legislation , business , russian federation , international taxation , function (biology) , international trade , member states , accounting , economic policy , public economics , tax reform , political science , economics , law , european union , evolutionary biology , biology
Rules on taxation of controlled foreign companies in developed and developing countries are characterized by an anti-evasive regulatory function, which is implemented by means of re-qualifying the profits of such companies. Such relations require coordination not only at the national but also at the international level (actions of the BEPS Plan, recommendations of the Organization for Economic Cooperation and Development). The Russian Federation and the Federative Republic of Brazil, being the BRICS member states, are actively improving their national legislation, while comparative legal studies on the topic of tax retraining of these jurisdictions at an integrated level have not yet been carried out. Using Russian and Brazil approaches as an example, the author explores the problems of improving tax re-characterisation mechanisms, taking into account the general standards of countering tax evasion and erosion of tax bases (BEPS Plan).