The List of Offshore Zones in the Russian Law

Definition of the term «offshore jurisdiction» is not set forth in the Russian law, the list of offshore jurisdictions is compiled by the Ministry of Finance of the Russian Federation, however the process and criteria, which are examined to add the jurisdiction in the list, are not formalized. Nevertheless, making a list of offshore jurisdictions is a matter of vital importance, because legal entities, registered in such zones are not entitled to use several benefits in Russia, are subject to enhanced control, their activity in specified spheres is limited. The practice of European Union blacklisting process was analyzed in the article, were scrutinized criteria for screening jurisdictions with a view to establishing an European Union list. Precisely established process and criteria makes it possible to form the list objectively, acts as a spur to foreign jurisdictions for cooperation, bringing domestic legislation in accordance with international base erosion and profit shifting requirements. Providing a legislative framework for criteria of offshore zones will lead to rising of transparency of compilation of this list, annual update of the list will allow objectively estimate the current state of foreign jurisdictions relating to the problems of tax evasion and money laundering.