Rothenberg refused to use the privilege to sanctioned individuals

Billionaire Arkady Rotenberg has declared “to Interfax” that will not change the tax residency of Russia, even in the case of amendment, which allows individuals from the sanctions list to give it up. “I’m a tax resident of Russia and a tax resident of other countries are not going to become, even if the bill is passed. As I know from the media, he is still at the discussion stage”, — he said.

“My brother and I pay taxes in Russia. This is a significant sum, which will remain in the budget without any talk of compensation or cancellation of the tax burden”, — the businessman added.

As written, March 13, the state Duma Committee on budget and taxes approved the amendment to the Tax code, under which individuals subject to personal sanctions, will be able to apply for the non-recognition of a tax resident of Russia if they are tax residents of a foreign state. The initiator was the head of the Committee Andrei Makarov.

“Kommersant” noted that we are talking about the range of persons “is even more narrow than personal “sanctions list”, because the vast majority, for example, a restrictive list of EU — politicians and the military, that is, citizens of Russia, not having the opportunity to have a second citizenship or residency of the other party and to remain on duty. The exception is only Ukrainian citizens living in Russia (the newspaper cited the example of former President Viktor Yanukovych), as well as a number of businessmen — the co-owner of “NOVATEK” Gennady Timchenko, Arkady Rotenberg and the head of “Rosneft” Igor Sechin.

The interviewed experts said that the meaning of the amendment could theoretically be only to free the people under sanctions from filing reports on controlled foreign companies (CFC). “It turns out this kind of compensation to the victims for the homeland patriots-residents of foreign States”, — said the interlocutor of the edition. Another possible purpose of the amendment, called the attempt to pre-empt a new wave of sanctions — in case someone will fall under new sanctions and will return to Russia, he will be able to regain the personal income tax, internally paid to them in Russia.

Commenting on the initiative, the Deputy of Makarov the day before, on 14 March, said that the bill is not in order to make relief to the owners of foreign companies and assets offshore. According to him, the amendment should help to avoid double taxation for those citizens who are companies or other assets in Europe, but due to sanctions are forced to constantly live in Russia.