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Russian Tax Official Arrested Over Nestle Audit

Monday, March 1, 2010

The Russian Ministry of the Interior has instituted criminal proceedings against the Deputy Chief of the Federal Tax Service Inspectorate for the Kirov district of Samara, Vyacheslav Kozhina, for obstruction of legitimate business through abuse of authority. Prosecutors considered that the tax authorities had illegally commenced insolvency proceedings against a Nestle owned confectionery company.

If the case is proven, Kozhina could face a fine from RUB80,000 to RUB200,000 (USD6,670), prohibition on holding a official position for up to three years, and 120 to 180 hours community service.

The Russian Federal Tax Service in the Samara region had petitioned the Samara courts for liquidation of the Nestle owned confectionery factory "Rossiya" in October 2009 for reasons of insufficient share capital after a loss-making period.

Howewer, negative financial results for a year cannot reasonably be used to force liquidation. According to the law on joint-stock companies, liquidation is only possible after the value of a company's net assets is less than the size of its minimum charter capital for several consecutive fiscal years, the Moscow Times was advised at the time in a statement released by Nestle.

The Nestle spokesman, Andrei Bader advised that the Nestle company Rossiya had ceased to be unprofitable and taxes had been paid on time and in full. Rossiya had not been the instigator of criminal proceedings, Bader added.

It was not the first time that Samaran authorities have clashed with foreign investors. Earlier in 2009 Ikea made public complaints on Swedish radio, reported by Handelsblatt and Business Week, about irregularities in its dealings with the authorities in Samara that caused a delay of more than a year in the opening of its 12th Russian outlet within a Samara shopping mall; in June Ikea announced it was putting its Russian investments on hold.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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