News date: 13 April 2017
Galyna Melnyk, lawyer at Ilyashev & Partners, delivered a speech “Business Structuring Using Estonian Companies” at IV International Tax Forum held on April 12, 2017, in Kyiv.
In the course of her report Galyna informed the Forum participants on the advantages of business operations with the use of Estonian jurisdiction, why this country is better than Cyprus with regard to tax optimization, outlined a number of possible models for using Estonia in view of trade and holding objectives.
Galyna Melnyk provided her advices that “will assist in preventing the negative experience of Cyprus”: do not use the company incorporated in Estonia as a transitional company without any business targets; insure real business presence in Estonia (availability of real office, employment of local staff, issuing of invoices from Estonian office); render services to other Estonian residents (e.g. sublease of office); adhere to market principles when elaborating the terms of transactions and comply with the requirements of Ukrainian legislation (e.g. submit, if required, the report on transfer pricing in Ukraine not trying to hide the fact that the company is related to Estonian company).
Forum participants discussed the global trends of taxation and their impact on Ukraine, current issues in international tax planning, novelties of tax reform 2017, case law on tax disputes, assets protection and many other matters.
This year International Tax Forum hosted more than 150 participants among which were judges of the High Administrative Court of Ukraine, representatives of the Ministry of Finance of Ukraine, State Fiscal Service, members of Ukrainian and international business associations, partners of leading law firms, top-managers and legal counsels of different enterprises.