The Ministry of Finance of the Russian Federation prepared a bill, according to which nominee shareholders and bondholders have to disclose their real beneficiaries. Otherwise, they must pay increased tax.
The idea makes sense, as nowadays many actual owners of capital screen themselves behind «fly-by-night» companies, which are registered in the offshore zones. According to the Ministry of Finance, the budget of the country loses almost 400 billion RUB per year due to this. In the offshore zones tax rates on equity income and returns on bonds, and also on dividends vary from 0% to 5%. That is essentially lower than in the country where they carry on actual entrepreneurial activity.
According to the suggestion of the Ministry of Finance, formal beneficiary that hasn’t disclosed actual owners will have to pay 30% not only of shares and bonds income, but also of dividends.
Thus, such an initiative is focused on implementation of deoffshorization of the Russian economy. This problem is frequently discussed by top leadership of the Russian Federation.
However, the system of implementation of these measures generates questions. It is easy to foresee that not only private companies take part in such national tax evasion scheme, but sometimes affiliated with them Russian officials, business of whom isn’t declared. Selective use and value detraction of this measure are highly probable.
The reliability index, prepared by the CredInform information agency is focused on revealing the «fly-by-night», because sometimes they operate as possible contractor in deal, in order to «bleach» their activity.
Information agency Credinform prepared a ranking of return on equity of companies engaged in precious metals ore extraction in Russia. Companies with this activity, largest in terms of turnover for the latest available in the Statistical Register period (2012), were selected for the ranking. The first 10 selected enterprises were ranked in terms of return on equity decreasing.
Return on equity indicates how many monetary units of net profits were earned by each unit invested by the company’s owners. This index allows assessing the effectiveness of the use of equity capital, invested by the owners. It is calculated as the ratio of net income to equity.
As is known, the standard values for profitability ratios are not defined, as the values of which differ considerably depending on the industry. That is why the ratio should be evaluated in comparison with the industry index values and the values of other companies in the industry.
However, many experts consider that return on equity should be higher than 10-12% for inflationary economies, such as the Russian one. The main comparative criterion is an alternative profitability, which the owner could get by investing in other businesses.
|№||Name INN||Region||Return on equity, %||Turnover, mln. RUB||Solvency index GLOBAS-i®|
|1||CC CMGC INN 8709009294||the Chukotka Autonomous District||85,54||29 959||197 (top)|
|2||LLC Omolon Gold Mining Company INN 4909109130||the Magadan Region||66,36||9 391||238 (high)|
|3||LLC Okhotskaya Mining INN 2715005530||the Khabarovsk Territory||42,58||9 813||177 (top)|
|4||CJSC Serebro Magadana INN 4900003918||the Magadan Region||35,85||20 861||178 (top)|
|5||OJSC "Uzhuralzoloto Group of Companies" INN 7424024375||the Chelyabinsk Region||32,51||8 218||218 (high)|
|6||OJSC "GV Gold" INN 3802008553||the Irkutsk Region||30,87||8 584||120 (top)|
|7||OJSC Aldanzoloto GRK INN 1402046085||the Republic of Sakha Yakutia||29,89||7 292||158 (top)|
|8||Gold of Nothern Urals CJSC INN 6617001534||the Sverdlovsk Region||27,20||8 456||165 (top)|
|9||CJSC Mnogovershinnoye INN 2705090529||the Khabarovsk Territory||25,19||7 738||139 (top)|
|10||CJSC "Gold-Mining Company "Polus" INN 2434000335||Krasnoyarsk Territory||18,71||60 959||150 (high)|
The first line of the ranking is for CC CMGC with a value of return on equity of 85.54%, which is a very good result and indicates the effectiveness of owners’ equity usage and high investment returns. CC CMGC is also the second in the industry in terms of turnover and it has got the highest solvency index GLOBAS-i ®, which characterizes it as a financially stable.
The second and third lines of the ranking are for LLC Omolon Gold Mining Company and LLC Okhotskaya Mining with the values of 66.36 and 42.58 % respectively, which is also an excellent result. Enterprises were given high and the highest solvency index GLOBAS -i ®, respectively.
CJSC "Gold-Mining Company "Polus", the leader in terms of turnover, closes the ranking with 18.71% ration of return on equity, which also can be considered a good result.
In general, companies in the industry have high indexes of return on equity in excess of 15%, which indicates the investment attractiveness of the industry in general and companies in the ranking in particular. All companies in the ranking were given solvency index GLOBAS -i ® from high to the highest. This indicates the financial strength of companies. Enterprises of the ranking are the most attractive from the point of view of revenue opportunities and risks minimization.