They lay it on sick again

Unfortunately, many Russian mass media have turned to tabloids long time ago & are looking only for sensations. One can just watch Russian TV during a day & it will become clear enough that the main principle of the channels, excluding only “Kultura” , is to seek  sensations. That’s why they often make much ado about nothing. Lately in September Mr. Charilaos Stavrakis Minister of Finance of Cyprus came to Moscow. He is to come on agreement on the double taxation between RF & Republic of Cyprus. The document has been already approved by Russian Prime Minister Mr. Putin earlier in September. Cypriots are willing to sign it as well. Is there any sensation? There’s no. But mass media want to invent it, publishing such eye catching titles as “Cyprus levies its defense”, “Cyprus Tax Heaven will be closed”. It’s a bull shit. You are to pay taxes, even if they are low. & who said that Cyprus is a tax haven? Nowadays Cyprus is a country that fulfills strictly all the requirements of the EU financial structures & agreed its financial policy with the EU. Indeed, Cyprus has the lowest tax rate in Europe of only 10% from a company’s income. Equal rate exists only in Bulgaria. That is why any company registered in Cyprus is to abide the existing financial requirements of the local authorities. But the same thing is in Russia! If a Cyprus company acted in Russia, had there its office, carried out trading, but then just vanished without paying correspondent taxes to Russia, Cyprus is willing to help. It is completely corresponding not only to the EU standards but to the nature of relationships between Russian Federation & Cyprus. Thus an additional document to the Agreement to be signed during President Medvedev’s visit to Cyprus – Article 27 on “Aid in taxation” should be considered natural. Sure, it doesn’t mean that Russian tax authorities gain access to the data base of the Cyprus Tax Department. Local officers will act according to their own rules, imposing measures or applying to court. They will even have a right to refuse Russian authorities if their claims will contradict local laws, & there can be many such cases. But the major rule for both of the countries remain solid: pay taxes & be left in peace! Most of the owners of Cyprus companies follow this advice & have no reasons to worry.