Viacheslav Ivanenko, Author at Finance Business Service

Main Aspects of Automatic Exchange of Financial Information under the CRS

Published: Viacheslav Ivanenko | 27/07/2018 | blog

In September 2017, a significant event for financial institutions around the world took place - the first automatic exchange of information for tax purposes in accordance with the CRS (Common Reporting Standard). The source of information exchange were banks, as well as other financial institutions (pension funds, investment and insurance companies, etc.). The second large group of countries is also joining the process of automatic information exchange in 2018. CRS provides for an annual automatic exchange of tax information between Member States of the Multilateral Cooperation Convention between the competent authorities on automatic information exchange under the CRS (MCAA Convention). The exchange of information on accounts of legal entities and natural persons will be made automatically, annually and on the principle of residency (in contrast to the FATCA law, which uses the principle of citizenship). The essence of the exchange is that banks collect information on financial activities on corporate accounts of the companies, individual accounts of natural persons, private funds and trusts, and then transfer it to the tax authorities of their country, which send this...

Transfer of Money from Offshore Companies: Why You Should Think about Your Offshore Investments

Published: Viacheslav Ivanenko | 10/07/2018 | blog

The tax authorities of our country (and not only ours) have been trying not for the first year to prove that it is not necessary to work with offshore companies. But business representatives continue to use them for their offshore investments. In this material, let’s talk about the reasons for this “love” and the current trends in the use of offshore companies. Is it legitimate to use offshore structures? Legislation of Ukraine does not prohibit the use of offshore companies. Of course, we are not talking about the situations where taxes are not paid at all (aggressive tax planning). The settlements with partners from offshore companies will undoubtedly cause questions from the tax service. But, we repeat, there is no ban on this kind of transaction. Schemes of work with the use of offshore structures Let’s pay attention to offshore schemes, which have proved to be the most widespread. Let's start with trading schemes. [InsertImageLightGallery path='/wp-content/uploads/2018/07/scheme3.jpg' root='0'] The practical benefit of using this kind of schemes is in a variety of options for optimizing income tax, VAT and customs-related payments in the Ukrainian company....

Analysis of exchange of tax information and investment in exchange for citizenship, taking into account the first results of the discussion organized by the OECD

Published: Viacheslav Ivanenko | 24/05/2018 | blog

Back in the first quarter of 2018, namely on February 19, 2018, a draft of advisory document was published on the official website of the Organization for Economic Cooperation and Development (OECD), which called on all interested parties to join the discussion on the OECD strategy for combating the loopholes on using the Common Reporting Standard (CRS, Single standard of tax information exchange) in the “citizenship by the investment” (CBI - granting citizenship in exchange for investments) and “residence by the investment” (RBI - granting a residence permit in exchange for investments). To date, more than 70 jurisdictions in the world offer these schemes. On April 17, 2018, a 96-page document was published on the OECD website (PUBLIC INPUT RECEIVED ON MISUSE OF RESIDENCE BY INVESTMENT SCHEMES TO CIRCUMVENT THE COMMON REPORTING STANDARD), which, in fact, summarized the first results of the discussion and the contents of the official letters to the organization. More than 20 structures were the speakers, including: AFME office in London (Association of Financial Markets in Europe, it brings together the largest agents in the capital markets in the region); ...

The EU Financial Market after Changes in Legislation: Will It Become More Transparent and Stable?

Published: Viacheslav Ivanenko | 28/04/2018 | blog

The newspaper “Journal du Dimanche” previously published information about the intentions of the French President Francois Hollande to hold a meeting with the leaders of Germany, Spain and Italy on March 6 in Versailles, dedicated to the future of the European Union. This mini-summit, among other things, should have to demonstrate the unity of the leaders of the four major European powers of the euro zone in the face of the many threats and crises that the EU is currently facing. The agenda also included the study of the issues “related to ensuring the strengthening of the development of the European Union”. On March 6, the government supported the changes to the Law on the Financial Instruments Market, the Law on Alternative Investment Funds and their Managers, as well as the Audit Services Act. What is the ultimate goal of these changes? They should make the EU financial market more transparent and stable, reduce systematic risks, protect depositors, and ensure the effectiveness of financial markets and reduce the costs of their participants. The changes in the laws have been designed to adopt the Directive of the European Parliament and the Council on the markets of...

How to choose a foreign bank and open an account in it in 2018: will it be easy?

Published: Viacheslav Ivanenko | 17/04/2018 | blog

What is important to know when choosing a foreign bank in 2018 Recently, an increasing number of citizens, concerned about their future, the future of their family or business, face the issue whether it is possible to open an account in a foreign bank and what is required for this? Which bank to choose for this: European, offshore bank, etc.? Historically, (and sometimes it is quite justified) the trust to a foreign bank is higher than to local institutions, and obtaining, for example, a loan is possible on more favorable terms than in Ukrainian banks, moreover, many people wish to keep the confidentiality of their actual income. Regardless of whether you want to open a foreign bank account online in offshore or onshore jurisdictions, a number of aspects need to be considered and analyzed when choosing a bank. That is why the company Finance Business Service works with more than 100 banks around the world. We ask only really necessary questions in the process of selecting banks for our clients. The current situation in the banking shows that financial institutions are increasingly facing problems of unexpected loss of correspondent accounts in US dollars. In general, the US is...

Is there bank secrecy in Ukraine, and what must the citizens of Ukraine be preparing for?

Published: Viacheslav Ivanenko | 13/04/2018 | blog

What is bank secrecy The relevance and importance of the topic of bank secrecy is hard to overestimate. The correct application of the legal rules regulating the procedure for its disclosure is necessary both for bank employees and all other persons who are aimed at gaining access to this information. At the same time, it is necessary for natural persons and legal entities to obtain information “protected” by law in order to protect their violated rights. Article 60 of the Law of Ukraine No. 2121-III of 07.12.2000 “On Banks and Banking” (as amended, hereinafter - the Law of Ukraine “On Banks and Banking”) defines bank secrecy as information on the activities and financial status of the client that has become known to the bank in the process of servicing the client and relations with him or third parties when providing services of the bank. Bank secrecy, with respect to the bank’s clients, in particular, are: information about clients’ bank accounts; transactions that were carried out in favor of or on behalf of the client, transactions carried out by him; financial and economic status of clients; client protection systems; information...

Author: Viacheslav Ivanenko