Russian taxmen will get access to the unified register of ultimate beneficiaries and owners of trusts of the EU countries

Anti-money laundering efforts enter the interstate and supranational level: the European Parliament adopted a directive, which obliges each EU country to create a register of ultimate beneficiaries of all companies registered on its territory, including those in its offshore jurisdictions. It will contain names, nationality and place of permanent residence of real owners not only of companies, but also of trusts. The innovation will come into operation since 2017, when national parliaments will lead their legislation to accepted standards.

Our country has joined the program of the OECD (Organization for Economic Cooperation and Development) about the automatic exchange of tax information, and it means that, technically, the Russian official authorities will be able to gain an access to the register formed by the Europeans already since 2018. Other individuals and organizations will be able to use this information, if they prove substantially the claim, laying to beneficiary.

Created system will become the first in the world centralized database on ultimate beneficiaries of companies in the EU, which will allow fighting with illegal schemes of tax avoidance and check of validity of reduced rates by transfer pricing.

However, there are many other offshore zones in today's world: in Asia, the Caribbean and other regions. There is a possibility, that the business will simply move its activities to more loyal countries and areas (Singapore, Bahrain, Belize etc.), thereby avoiding to be placed into the unified register of EU countries.