The legal framework to combat offshores: international and Russian efforts

Abstract

This study is dedicated to a very painful problem of the global economy, namely, tax evasion resulting from hiding assets in offshore financial centers (OFCs) which are featured by 1) low or zero tax rates, 2) high secrecy or lack of transparency and 3) providing this benefits to non-residents. Correspondingly, the main challenge for the international organizations and national governments has been to develop legal tools for tackling base erosion and profit shifting, unveiling beneficial ownership and promoting transparency. The retrospective analysis of the international legal framework to combat tax evasion via low-tax jurisdictions finds out that Russia's recent laws have been, generally, in line with international efforts.