Tax Inspectorate No.22 claims 2.5 billion rubles of Nice JSC debt from Michaella LLC, it follows from the Moscow City Arbitration Court materials. According to the inspectors, Nice business (199 staff and contractors) was moved to Michaella for tax evasion purposes. Tax officers claim the two organizations are affiliated because goods with nc (nice connection) marking were found on pallets at Michaella premises.
According to Kartoteka.ru, Nice JSC majority owner is Dmitry Bregman (53% share), while Michaella is 100% owned by Olga Pletin (Mr. Bregman’s sister, the tax inspectors say). SPARK-Interfax data shows that Michaella LLC operates a chain of Michaella stores selling European clothing brands like Gerry Weber, Bugatti, Fuchs n Schmitt, Taifun, etc. Its website states that the company owns 25 stores in Moscow’s major shopping malls, including Aviapark, Golden Babylon, Schuka, and Rio. According to Infoline Analytics, Michaella had a total of 32 stores in Russia in mid-2017, with the total retail area of more than 3800 sq.m., and the retailer’s revenue in 2016 was 2.2 billion rubles excluding VAT.
Moscow City Arbitration Court dismissed the claim by Siemens Gas Turbine Technologies (SGTT, a joint venture between Siemens Corporation of Germany, with 65%, and Power Machines, Russia, with 35%) against RosTech entities TechnoPromExport (TPE) JSC and TPE LLC, seeking to invalidate the contracts for delivery of four SGT5-2000E gas turbines and return the machines to the claimant.
The German company tried to prove that the two TPE entities delivered the turbines to Crimea illegally, which were originally purchased for a technologically similar CHPP project in Taman. The four turbines were purchased by TPE JSC for the project in Krasnodar Krai, under a contract with the German vendor; however, the construction tender was later canceled. TPE LLC, the company building Balaklavskaya and Tavricheskaya CHPP in Crimea with the total capacity of 940 MW, purchased the turbines and, according to RosTech, upgraded them at Russian enterprises.
Another amnesty of capital can take place in 2018; that is, entrepreneurs can declare their foreign assets subject to tax secrecy and exemption of all liability. This President’s offer to the business, never mentioned previously, was declared yesterday by Anton Siluanov at the United Russia party congress. “The timing is open for discussion, but I think it won’t be less than one year. The terms are probably the same as we did before, but it’s also negotiable”, the minister explained. “This is primarily related to medium-sized businesses and those entrepreneurs who have not taken up the previous amnesty offer, being afraid to reveal their account and business data, which may not always have been legal to the law enforcement authorities and mass media.” Another measure announced together with the amnesty is the extension of the zero corporate income tax rate offer, originally set to expire in 2017, available to foreign companies on closure and return of capital.
The previous amnesty mentioned by the minister, which was part of de-offshorization effort, was also initiated by the President in his address to the Federal Council in December 2014. The law “On Voluntary Declaration” needed for that action was passed by the State Duma in May 2015 – everyone was suggested to submit a special declaration to the tax authorities with information on the property (land and other real estate, vehicles, securities, shares in business), foreign companies under their control and foreign bank accounts. The declarants were promised tax secrecy regime and exemption from all types of liability, with no taxes to be paid on the assets disclosed.
An amnesty for as many as 50 million residents, including individual entrepreneurs, was suggested by the President during his big press conference. He suggested that debts arising through no fault of the individual but due to imperfectionы of the tax system be written off. This would not require a visit to the tax inspection – almost 80 billion worth of debts accumulated over the past two years will be written off automatically.
This is the second time Putin uses elections to promise debt relief to the voters. A similar gift was given in 2011, when he was the prime minister. However, individual entrepreneurs’ debts were not affected the last time. 31% of the voters were pardoned six years ago. This time the figure is higher – 45%. Putin’s move can be seen as a pre-election generosity, according to political analyst Abbas Gallamov. 42 million people will be excused 41 billion rubles worth of property taxes accrued as of 1 January 2015 and penalties, the federal official explains.