Introduce into the Federal Law of April 5, 2013 N 44-FZ “On the contract system in the field of procurement of goods, works, services to meet state and municipal needs” (Collected Legislation of the Russian Federation, 2013, N 14, Art. 1652; N 27, Art. 3480; Art. 6961; Art. 2925; Art. 48; Art. 6925; 51, 72; N 10, Art. 1418, Art. 2022; Official Internet portal of legal information (www.pravo.gov.ru), June 30, 2015, N 00012015063000082; the following changes:
1) paragraph 4 of Article 3 after the words “origin of capital” shall be supplemented with the words “, with the exception of a legal entity whose place of registration is a state or territory included in the list of states and territories approved in accordance with subparagraph 1 of paragraph 3 of Article 284 of the Tax Code of the Russian Federation, providing preferential tax treatment and (or) not providing for the disclosure and provision of information when conducting financial transactions (offshore zones) in relation to legal entities (hereinafter referred to as an offshore company),";
2) in article 14:
a) in part 4, the words “a ban and restrictions have been established” should be replaced with the words “a ban has been established”;
b) add part 6 with the following content:
"6. The regulatory legal acts provided for in parts 3 and 4 of this article and establishing restrictions, conditions for the admission of goods originating from foreign countries, works, services, respectively, performed and provided by foreign persons, for the purpose of procurement, may determine cases in which the customer when executing a contract, does not have the right to allow the replacement of goods or the country (countries) of origin of goods in accordance with Part 7 of Article 95 of this Federal Law.";
3) in article 31:
a) part 1 shall be supplemented with paragraph 10 as follows:
"10) the procurement participant is not an offshore company.";
b) part 8 should be stated as follows:
"8. The procurement commission verifies the compliance of procurement participants with the requirements specified in paragraph 1, paragraph 10 (except for cases of an electronic auction, request for quotations and pre-selection) part 1 and part 1.1 (if there is such a requirement) of this article, and in in relation to certain types of procurement of goods, works, services, the requirements established in accordance with parts 2 and 2.1 of this article, if such requirements are established by the Government of the Russian Federation, the Procurement Commission has the right to verify the compliance of procurement participants with the requirements specified in paragraphs 3 - 5, 7 -. 9 of part 1 of this article, as well as when conducting an electronic auction, request for quotations and pre-selection, the requirement specified in paragraph 10 of part 1 of this article does not have the right to impose on procurement participants the obligation to confirm compliance with the specified requirements, except in cases where. these requirements are established by the Government of the Russian Federation in accordance with parts 2 and 2.1 of this article.";
d) add part 8.2 with the following content:
"8.2. The customer checks the compliance of the participant in the request for quotation with whom the contract is concluded with the requirement specified in paragraph 10 of part 1 of this article when concluding the contract.";
4) in part 15 of Article 34, replace the words “40 and 41” with the words “40, 41, 44 and 45”;
(see text in the previous edition)
6) Article 73 shall be supplemented with part 3.1 as follows:
"3.1. A participant in the request for quotations who has submitted an application to participate in the request for quotations is considered to have provided the customer with information about his compliance with the requirement specified in paragraph 10 of part 1 of Article 31 of this Federal Law.";
7) part 11 of article 78, after the words “signed contract”, add the words “and an extract from the unified state register of legal entities or a notarized copy of such an extract (for a legal entity), which were received no earlier than six months before the date of placement in the unified information system notification of a request for quotation, a duly certified translation into Russian of documents on state registration of a legal entity in accordance with the legislation of the relevant state (for a foreign entity)";
8) Article 80 shall be supplemented with part 5.1 as follows:
"5.1. The pre-selection participant who submitted an application to participate in the pre-selection is considered to have provided the customer with information about his compliance with the requirement specified in paragraph 10 of part 1 of Article 31 of this Federal Law.";
9) in Article 93:
a) in part 1:
Add paragraph 44 with the following content:
"44) purchase by state and municipal libraries, organizations engaged in educational activities, state and municipal scientific organizations of services to provide the right to access information contained in documentary, documentographic, abstract, full-text foreign databases and specialized databases of international science citation indices from operators of the specified databases included in the list approved by the Government of the Russian Federation;";
Add paragraph 45 with the following content:
"45) purchase by state and municipal libraries, organizations engaged in educational activities, state and municipal scientific organizations of services to provide the right to access information contained in documentary, documentographic, abstract, full-text foreign databases and specialized databases of international science citation indices from national libraries and federal libraries with scientific specialization. Moreover, the price of such a contract concluded with a single supplier (contractor, performer) is determined in accordance with the procedure established by the Government of the Russian Federation.";
In modern market conditions, concepts such as offshore zones and offshore companies have become quite stable. In the media you can see many advertisements offering services for registering an enterprise in a tax-free territory or opening an account in some major bank in the world.
Offshore companies are legal entities registered in a jurisdiction in which there are no exchange controls and preferential taxation. These organizations do not operate in the territory where they are registered. The owners of such companies are non-residents of the country. Such organizations arise in those countries whose legislation fully or partially exempts enterprises that do not conduct business in the territory of registration from taxation. It should be noted that the benefits apply only to work outside the country where the company is registered. To conduct a full-fledged business in any other state, it is necessary to conclude an appropriate agreement. This avoids
On August 13, 2015, Law No. 227 came into force. It introduced a number of amendments to the regulatory act regulating procurement for municipal and state needs. From this moment on, customers in the documentation establish a mandatory requirement for participants that they do not act as offshore companies. This provision, however, does not apply to request for quotation, electronic auction and pre-selection. In the first and last cases, control over the implementation of amendments to the Law is carried out when concluding a contract. During an electronic auction, the site operator will refuse registration if applications are submitted by offshore companies. 44 of the Federal Law in all other cases obliges the customer commission to establish the nature of the participant’s registration. However, it does not have the right to demand from the organization submitting the application confirmation of the fact that it is not an offshore company.
According to the provisions of international law, offshore companies are independent organizations that operate under the laws of the countries in which they are registered. Today there are about 60 states in the world whose regulations provide for preferential taxation. Enterprises registered in such countries can open accounts with any major banks in an unlimited number. In fact, the activities of such organizations are not accountable to anyone. In almost all “tax-free” countries, annual reporting involves the transfer of a fixed fee.
There are several reasons why businessmen open offshore companies. This:
Offshore companies in Russia are of particular value. It lies in the fact that it becomes possible to legally freely move capital. In difficult conditions that can destroy entire sectors of the economy, it is the offshore scheme that allows you to achieve high profits in business. The need to create such an organization arises, as a rule, from those entrepreneurs who receive a good income and want it to remain that way and not change in the event of market instability or government intervention. It should be said that the use of offshore companies is widespread throughout the world. However, the goals of creating such organizations are different. As for Russia, here entrepreneurs, as mentioned above, are trying to protect their capital from taxes, the ineffective unfavorable investment situation in the country and high risks. This is the main motivation for exporting money abroad and concealing the fact of ownership of an object on the territory of the state.
This can be done in two ways: on your own or seek help from specialists. How to confirm that the company is not offshore yourself? To do this you need:
However, this process will take quite a long time. In addition, there is absolutely no guarantee that all requests will be answered, and some facts can only be clarified if you have the necessary connections.
As for specialists, many of those who offer such assistance have been searching for information for quite a long time. This means that they have the necessary connections, experience and knowledge. Such companies can provide information about:
The reliability of the information, of course, will depend on the performer himself. But, as practice shows, in 90% of cases the information provided by such specialized companies is worth believing. It should be said that an independent search for information, as a rule, does not lead to anything, or the interested person receives only superficial, unimportant information. In order not to waste time, it is better to pay specialists who will provide answers to all questions.
When providing 2 parts by email. The winner of the auction was provided with a Declaration of compliance of the participant with the requirements of Part 1 of Article 31 of the 44-FZ, which does NOT specify the following points: 7.1) procurement participant is a legal entity that, within two years before submitting an application for participation in the procurement, was not brought to administrative responsibility for committing an administrative offense under Article 19.28 of the Code of the Russian Federation on Administrative Offenses; 10) the procurement participant is not an offshore company. Should we reject this participant?
Konstantin Edelev, expert of the State Order System
From August 14, 2019, the procedure for calculating fines under 44-FZ was changed: the requirement for a fixed amount was removed, and the penalty for SMP and SONO was reduced. In the article you will find all the current rules. Working with penalties will be simplified by examples of wording and judicial practice.
Based on the literal interpretation of the provisions of clause 7.1, part 1, art. 31 of Law No. 44-FZ, this requirement applies only to legal entities. Accordingly, individuals or individuals without forming a legal entity do not need to declare information on compliance with the requirements for procurement participants, which are provided for in clause 7.1, part 1, art. 31 of Law No. 44-FZ.
Moreover, if the procurement participant is a legal entity and when declaring its compliance with the requirements established by clauses 3 - 9 of part 1 of Article 31 of Law No. 44-FZ, its compliance with clause 7.1, part 1 of Art. 31 of Law No. 44-FZ, then the application for participation in the electronic auction is recognized as not meeting the requirements established by the documentation for such an auction on the basis of clause 1, part 6 of Art. 69 of Law No. 44-FZ.
A participant in an electronic auction does not need to declare that he is not an offshore company. However, if the customer becomes aware that the participant is an offshore company, the commission has the right to remove him from the auction at any time. This is stated in Part 9 of Article 31 of Law No. 44-FZ.
In the second part of the bid, must the bidder provide a declaration that he is not an offshore company?
No, you shouldn't. However, if the customer becomes aware that the participant is an offshore company, the commission has the right to remove him from the auction at any time. This is stated in Part 9 of Article 31 of Law No. 44-FZ.
The ban on offshore companies participating in procurement is established by clause 10 of part 1 of article 31 of Law No. 44-FZ.
According to clause 6, part 5, art. 63 of the Federal Law of April 5, 2013 No. 44-FZ “On the contract system in the field of procurement of goods, works, services to meet state and municipal needs” (hereinafter referred to as Law No. 44-FZ), the notice of an electronic auction establishes the requirements, presented to participants in such an auction, and an exhaustive list of documents that must be presented by participants in such an auction in accordance with clause 1, part 1, part 2 and part 2.1 (if there are such requirements) Art. 31 of Law No. 44-FZ, as well as the requirement imposed on participants in such an auction in accordance with Part 1.1 (if there is such a requirement) Art. 31 of Law No. 44-FZ.
In accordance with clause 10, part 1, art. 31 of Law No. 44-FZ, the notice establishes the requirement that the procurement participant is not an offshore company.
In turn, in accordance with clause 2, part 5, art. 66 of Law No. 44-FZ, the second part of the application for participation in an electronic auction must contain documents confirming the compliance of the participant in such an auction with the requirements established by clause 1, part 1, part 2 and part 2.1 of Art. 31 (if there are such requirements) of Law No. 44-FZ, or copies of these documents, as well as a declaration of compliance of the participant in such an auction with the requirements established by paragraphs. 3 - 9 hours 1 tbsp. 31 of Law No. 44-FZ.
That is, the participant in the electronic auction does not declare that he is not an offshore company.
Also in accordance with Part 8 of Art. 31 of Law No. 44-FZ, the auction commission is not obliged, but only has the right to check the participant in the electronic auction for compliance with the requirement established in accordance with clause 10, part 1 of Art. 31 of Law No. 44-FZ, since such an obligation lies with the operator of the electronic platform (Part 8.1 of Article 31 of Law No. 44-FZ).
But since the auction commission has the right to check the participant in the electronic auction for compliance with the requirement established in accordance with clause 10, part 1, art. 31 of Law No. 44-FZ, we will inform you how to do this.
According to paragraph 1 of Art. 1 of Law No. 227-FZ, an offshore company is a legal entity whose place of registration is the state or territory included in the one approved in accordance with paragraphs. 1 clause 3 art. 284 of the Tax Code of the Russian Federation, a list of states and territories that provide preferential tax treatment and (or) do not provide for the disclosure and provision of information when conducting financial transactions (offshore zones) in relation to legal entities.
According to paragraphs. 1 clause 3 art. 284 of the Tax Code of the Russian Federation, the following tax rates are applied to the tax base determined by income received in the form of dividends:
Moreover, if the organization paying dividends is foreign, the tax rate established by this subparagraph is applied to organizations whose state of permanent location is not included in the list of states and territories approved by the Ministry of Finance of the Russian Federation that provide preferential tax treatment and (or) do not provide disclosure and provision of information when conducting financial transactions (offshore zones).
Thus, the list of states and territories that provide preferential tax treatment and (or) do not provide for the disclosure and provision of information when conducting financial transactions (offshore zones) (hereinafter referred to as the List) was approved by Order of the Ministry of Finance of Russia dated November 13, 2007 No. 108n.
Thus, the List includes, for example, the following offshore zones:
The auction commission reviews the second parts of applications for participation in the electronic auction and documents sent to the customer by the operator of the electronic site in accordance with Part 19 of Art. 68 of Law No. 44-FZ, in terms of compliance with their requirements established by the documentation for such an auction (Part 1, Article 69 of Law No. 44-FZ).
According to Part 19 of Art. 68 of Law No. 44-FZ within one hour after posting the protocol specified in Part 18 of Art. 68 of Law No. 44-FZ, the operator of the electronic site is obliged to send to the customer the specified protocol and the second parts of applications for participation in such an auction submitted by its participants, proposals for the contract price of which, when ranked in accordance with Part 18 of Art. 68 of Law No. 44-FZ received the first ten serial numbers, or if less than ten participants took part in such an auction, the second parts of applications for participation in such an auction submitted by its participants, as well as the documents of these participants, provided for in paragraphs. 2 - 6 and 8 hours 2 tbsp. 61 of Law No. 44-FZ and contained on the date and time of the deadline for filing applications for participation in such an auction in the register of its participants who have received accreditation on the electronic platform. During this period, the operator of the electronic platform is also obliged to send appropriate notifications to these participants.
According to clause 4, part 2, art. 62 of Law No. 44-FZ in the register of participants in an electronic auction who have received accreditation on an electronic platform, in relation to each participant in such an auction there must be a copy of an extract from the unified state register of legal entities (for a legal entity), a copy of an extract from the unified state register of individual entrepreneurs (for individual entrepreneur) received no earlier than six months before the date of application for accreditation by a participant in such an auction, copies of identification documents of a participant in such an auction (for another individual), a duly certified translation into Russian of documents on state registration of a legal entity or an individual as an individual entrepreneur in accordance with the legislation of the relevant foreign state (for a foreign person).
That is, the auction commission can, in order to check the participant in the electronic auction for compliance with the requirement established under clause 10, part 1, art. 31 of Law No. 44-FZ, use, for example, a duly certified translation into Russian of documents on state registration of a legal entity in accordance with the legislation of the relevant foreign state, checking in these documents the place of registration of the legal entity.
When concluding a contract, the customer is not obliged (he has the right) to check whether the winner of the electronic auction is an offshore company, he can also do this, like the auction commission, and if at the stage of concluding the contract the customer establishes the fact that the winner of the electronic auction is offshore company, then in accordance with Part 9 of Art. 31 of Law No. 44-FZ, he must refuse to enter into a contract.
Hello, dear colleague! In today’s article we will deal with such a well-known concept as “offshore”. Many procurement participants have heard the term itself, but not everyone knows what it is and how it works. Also, clause 10, part 1, article 31 of 44-FZ establishes a requirement for procurement participants, which states that the participant must not be an offshore company. In this regard, I suggest you understand this concept in as much detail as possible. You are ready? Then go ahead!
Such a concept as “offshores”/“offshore” has an economic and geographical orientation rather than a legal one, since there is no law on offshore companies in Russia.
What is “offshore” in simple words? These are companies registered in countries that provide preferential conditions, namely the absence or minimum interest rate on taxes and other fees.
An offshore jurisdiction is a country in which it is legally approved to provide companies registered on its territory with benefits or a complete waiver of taxes, and there is also no reporting to the accounting and tax authorities.
It should be noted that exemption from various payments to an offshore company at the place of so-called “registration” does not relieve it from these obligations at the place of actual presence.
Offshore translated from English as “off shore” means “outside the border”. You can often find this concept written with one letter “f” - this is not a mistake, but in the business community it is customary to use it with a double letter.
In general, the concept of “offshore” has a rather long history of development. Even in ancient times, merchants took their goods outside their cities of residence and sold them in other territories where taxes were lower.
For the first time in legal practice, the concept of offshore was used in the second half of the 20th century. In one of the UK newspapers, this word was used to describe the successful activities of a company that transferred its assets to another country.
Russian business gained access to offshore zones in 1991 after the collapse of the USSR. At this time, the first representative of offshore business from Switzerland appeared in Russia.
Offshore jurisdictions have several types and differ from each other in a number of parameters:
Despite the fact that global legislation in this area has tightened control over offshore companies, this type of business continues to be popular. Thus, in this paragraph of the article we discussed with you what offshore means and why offshores are needed.
The concept of “offshore” has already steadily entered our lives. Many people believe that opening this type of company is the best option. The pros and cons of opening an offshore company can be considered both from the point of view of registering a new company, and from the point of view of purchasing an already ready one. Let's look at both situations.
So, in the case of initial registration of offshore companies, there are the following positive and negative aspects.
Thus, there are much more advantages than disadvantages in the case of registering a new company offshore.
Now I propose to consider the positive and negative aspects of purchasing ready-made offshore companies. In this matter it is difficult to create a comparative table, so I propose to consider it step by step.
The easiest and fastest way to become the owner of an offshore company is to buy a ready-made one. This type of company is also called shelf and the advantage is that all the legal aspects have already been completed, so you do not have to wait for days and weeks. The agent providing the services, as a rule, registers the company in advance, selects the name and nominee directors. When purchasing a ready-made company, all paperwork is simply reissued, which allows you to reduce the time frame.
In addition to the speed of registration, there is also the issue of the duration of the company’s existence. On papers of this kind, an offshore company can exist for quite a long time and not have any complaints from the inspection authorities; information about when you became the owner is hidden from absolutely everyone, so you can buy a ready-made offshore company with a positive reputation that has already been “accumulated over the years.”
But in addition to the positive aspects of buying a ready-made company, there are also negative ones.
It is impossible to exclude the possibility that there are no debt obligations on a ready-made offshore, even if it exists for only a few days. It is also extremely difficult to verify this kind of information. The only guarantor can only be a law firm organizing an offshore purchase and sale transaction.
Also, another point that may discourage you from buying a company offshore is the already existing name, which cannot be changed. For many, this moment is fundamental.
And finally, the last, but by no means simple negative point in buying a registered offshore company is a transaction with an agent who, as it were, sells you a ready-made offshore company, but in fact he does not have one. First, the agent finds a buyer, then registers a new company in his name, and then registers it in your name. Thus, the most important advantage - speed of registration - is completely lost.
Here are the main pros and cons of offshore registration.
Tax and insurance payments are constantly growing, and the question increasingly arises: “How to open an offshore company?” Although global legislation is tightening its attitude towards offshore companies, it is nevertheless quite possible to register a company in another country.
Most often, in order to open an offshore company, Russian businessmen resort to the services of intermediaries. This reduces the time of the procedure itself, since experienced specialists know how to do everything. Also, the cost of this service is usually justified. Here it is important to understand that the entrepreneur receives guarantees and confidence that everything will be done competently, clearly and quickly.
If an entrepreneur wants to avoid overpayments, you can try to carry out this procedure yourself. Each offshore jurisdiction has a clearly stated description of the registration procedure. The main and paramount thing is the competent choice of a “tax haven” with optimal conditions. It is important to assess the degree of confidentiality and restrictions on engaging in commercial activities.
In order to open a company in an offshore country, you need to choose an original name, after which you either turn to an intermediary company for help or collect a package of documents yourself and send it to the registration authority.
After a positive decision is made, the offshore company is entered into the official register, and the original documents are received in hand, you can begin to conduct business. It is important to understand that at any stage of registration you may need competent advice and assessment from an experienced lawyer.
Below you will be presented with a list of offshore countries with the approximate cost of registration, nominee service and annual payments. Please note that these figures are not exact.
In addition to the countries presented above, also offshore countries are the Cayman Islands (registration cost will be 7,500 US dollars), Scotland (registration cost will be 2,500 US dollars), Luxembourg (registration cost will be 23,200 US dollars), etc.
In this paragraph of the article, it would have been easier, of course, to use the concept of a “scheme” for using offshore companies, but I think that it is more suitable for illegal types of activities. Therefore, I propose to consider the main opportunities that open up when using companies in an offshore zone.
These are not all the opportunities that offshore opens up for doing business. It all depends on the direction of the planned activity, as well as on the country in which the offshore company is registered.
In the next paragraph of the article we will focus on the most frequently asked questions, one way or another related to the activities of offshore companies.
An offshore bank account is a guarantee of your confidence in the future and the security of your assets. In order to open an account, you don’t need to make any extra efforts, just choose a bank that is convenient and suitable for you, collect and send the necessary documents.
Of course, there is some risk. Suffice it to recall the Cyprus crisis of 2014 and 2015, when all assets, including those of foreign citizens and companies, were frozen, but, you see, by placing financial funds in Russian banks, you are also not immune from such incidents.
It is important to understand the difference in concepts between an offshore bank and a bank in an offshore zone.
An offshore bank, in fact, is any bank outside the state of your residence and registration. An offshore bank is a financial institution registered and/or located in countries with preferential tax rates or their complete absence. As a rule, these types of banks have much higher interest rates on deposits and cheaper services, but are no less reliable than others.
In any case, it is important to know that all information about you in this kind of financial institutions is completely hidden.
Opening an offshore bank account for a company will be a little more difficult, since such serious institutions value their reputation and conduct a thorough check of their clients.
Liquidation through an offshore company is a convenient way to reduce a company’s debts to the state, as well as the opportunity to legally “bounce off” outstanding loans. This method is completely legal provided that all legal standards are followed. Naturally, liquidating an LLC through an offshore company carries risks, but they can be avoided by attracting a competent team of lawyers.
In the previous paragraphs of the article, I have already described in detail how offshore companies work and how to register such a company. The answer to this question is most likely in the nature of a conclusion from all of the above. You can make money offshore by reducing the company's tax payments. If you plan to have a large turnover of funds, then the amount for registering and maintaining an offshore company will very quickly return to you in the form of reduced costs for taxes and other payments to the budget. The list of offshore companies, or rather countries with approximate cost of service, is presented above.
You can buy a ready-made offshore from a specialized company. Just enter “buy offshore” into your browser search and you will immediately see a fairly large list of Russian companies providing such services.
Thus, you should not be afraid of offshores, as this is a very real way of doing business and reducing a large number of costs. I highly recommend that before you rush headlong into the pool and start collecting documents on your own, draw up a detailed one and carry it out in order to conduct a complete analysis of the risks and benefits and not go broke in the future.
This concludes my article. Now you know almost everything about offshore companies and offshore zones. I hope that this material was useful to you. Good luck to you and see you again on the pages of the site.
Companies registered in offshore companies are denied access to procurement for state and municipal needs
On July 13, the President of the Russian Federation signed Law No. 227-FZ “On Amendments to the Federal Law “On the Contract System in the Sphere of Procurement of Goods, Works, and Services to Meet State and Municipal Needs.” In accordance with the new law, from August 13, 2015, participants (suppliers, contractors) in government procurement cannot be legal entities registered in an offshore zone. We asked Elena Viktorovna Agapova, director of the Center for the Development of Competition Policy and State Order at the Higher School of Public Administration of the Russian Academy of National Economy and Public Administration under the President of the Russian Federation, to comment on the change in legislation.
- Vladimir Putin signed a law prohibiting the participation of offshore companies in state and municipal procurement. How much will this decision affect the government procurement market? What will be the main result: increasing tax collection, reducing corruption, eliminating risks associated with foreign jurisdictions?
Offshore companies or offshore zones make it easy to enter the international financial and investment market. The legislation of many offshore zones is based on the principles of confidentiality and protection of the rights of the owner. Companies that are registered in offshore zones very often have formal (dummy) general directors. Therefore, the scheme is absolutely standard when the profits of offshore companies increase, and the profits of Russian companies decrease, thereby reducing the tax base for calculating taxes. In addition, offshore legal entities, as a rule, are not manufacturing companies, but merely provide consulting, marketing or information services, so the involvement of these companies as contractors immediately raises many questions.
Let's remember that the deoffshorization of the Russian economy began in 2013 in accordance with the instructions of the President of the Russian Federation on the development of measures aimed at reducing the participation of offshore companies in the Russian economy. Therefore, the adopted Federal Law of July 13, 2015 No. 227-FZ should not have a strong impact on the public procurement market. Nevertheless, such a rule should lead to increased tax collection and the elimination of risks associated with foreign jurisdictions, reducing the outflow of capital abroad and reducing corruption risks.
- Will exceptions be made for some types of government procurement, for example, for procurement by Russian foreign institutions? Are there plans to extend the law to procurement of legal entities regulated by Federal Law No. 223?
The adopted Federal Law No. 227-FZ prohibits the participation of offshore companies in state and municipal procurement and does not imply the introduction of exceptions for any procurement. Unlike Federal Law No. 44, which specifies requirements for procurement participants (suppliers, contractors), Federal Law No. 223 does not establish requirements for procurement participants (suppliers, contractors). Organizations operating under Federal Law 223 independently establish requirements for bidders in the procurement regulations and in the relevant tender documentation.
- How will the law be implemented in practice if trading is conducted electronically on-line?
There will be no changes during the conduct of electronic auctions, and at the time of company accreditation, the operator of the electronic trading platform will be obliged to check newly accredited companies for compliance of the participant with the requirements of Federal Law-44. At the same time, the customer commissions are directly obliged to check companies that were previously accredited and are participating in the auction. These amendments to Federal Law 44 complicate the work of customer commissions and require additional control over offshore jurisdictions.
- How complete is the list of offshore companies that tender commissions will focus on? Will it happen that some offshore companies will not be included in it for one reason or another?
The regulatory body for approving the list of offshore jurisdictions is the Ministry of Finance of the Russian Federation, which monitors the activities of offshore companies and, if necessary, makes changes to the list of states and territories that provide preferential tax treatment and (or) do not provide for the disclosure and provision of information when conducting financial transactions (offshore zones).
- Let’s say that the tender is won by a participant not registered offshore. Will he be able to subcontract to an offshore company?
One of the solution options is the right of the customer to independently establish in the procurement documentation the procedure for attracting subcontractors for the execution of state and municipal contracts. By decision of the customer, a ban on engaging offshore companies for subcontracting may be established, but there is no direct legal ban.
- If an offshore company establishes a subsidiary in Russia, will the latter be able to participate in bidding on government orders? Let’s imagine the following situation: a participant registered not in an offshore company wins a tender, signs a government contract, and then is bought by an offshore company. What will happen in this case?
Such situations are currently not regulated by law. The legislator does not establish requirements for the founders of companies participating in procurement under 44-FZ. Even if an offshore company suddenly purchases shares of a Russian company, the jurisdiction of the Russian organization will not change.
- What provisions can be added to the law to increase its efficiency and reduce the number of loopholes for those who like to work through offshore companies?
There are various development options along which it is possible to move forward. One of them is establishing requirements for procurement participants under Federal Law-223, but this must be done very carefully and always together with large organizations operating under Federal Law-223.
