Offshore Companies: Conflict of Interests Between the State and Business

Abstract

The problem of offshoring economy is relevant not only for Russia. It is rather difficult to calculate the amounts leaking to offshores. The figures in the press is a very rough estimate. The analysis carried out in this article allows us to draw conclusions about the reasons for the use of offshore jurisdictions and the negative consequences for the economies of the countries facing this problem. The advantage for businessmen in using offshore is the convenience of conducting international transactions, the ability to reduce customs duties, in the case of importing goods or exporting them at low prices through an offshore. Services can also be used as a subject of a contract, but it is difficult to control whether they were actually provided. At the same time, the creation of a company abroad has a positive effect on the reputation of Russian businessmen. The article analyzes Russia's participation in the global investment process, the geographical features of the inflow and outflow of foreign direct investment, summarizes Russian and foreign experience in struggling against capital flight, suggests options for reducing the use of offshore companies in the economy.