International law firm Integrites in cooperation with renowned experts in the sphere of international tax planning from the most popular low-tax jurisdictions: Hong Kong, UK, Netherlands, Luxemburg and Cyprus together with representatives of the real economy provided their vision of the Cyprus crisis aftereffects, discussed fiscal climate and business conditions in the offshore zones - alternatives to Cyprus and other offshore jurisdictions affected by the crisis.
International business seminar «The exodus from Cyprus. Business menu for a beneficiary», which took place on April, 25 at InterContinental Kiev Hotel, became the unique business platform for owners and top managers of more than 60 leading financial groups and large companies from the real economy sector of Ukraine. Business representatives gathered to discuss the most burning question of the outgoing spring – the Cyprus crisis, the extent of its impact on Ukrainian business and possible low-tax alternatives for business.
The moderator of the business seminar was Ilya Soykis, partner of ILF Integrites, well-known expert in tax and corporate law, M&A. During the first session Erik Nayman, managing partner of Capital times, made a short excursus to the realities of the global economy and advised not to keep money neither on deposit, nor on bank accounts. Instead he recommended to tie up capital in bonds and eurobonds. Oleksandr Aleksyeyenko, partner of ILF Integrites, casted a vision for tendency towards abolition of banking secrecy in a number of law-tax jurisdictions: Switzerland, British Virgin Island (BVI) and possible consequences.
The development of offshore map was originated by the speech of Demetris Nicolaou, law firm HARNEYS (Cyprus), who analyzed Cyprus bailout package, adopted in the end of March 2013 and tried to convince participants of the business seminar not to withdraw their assets from Cyprus. He highlighted the fact that “the level of professional services and law tax rates were not affected by crisis”.
Taking account of magnitude of the financial losses of Ukrainian business incurred as a result of the crisis, Maksym Kodunov, Counsel at ILF Integrites, suggested the effective step by step plan for the protection of investors, suffered from the Cyprus economic recession.
During the next speech Yaroslav Abramov, Counsel at ILF Integrites, focused on four methods of company redomiciliation from Cyprus and pointed to their pros and cons. Besides, Mr. Abramov marked on the virtual offshore map six more jurisdictions, including Ireland, Latvia, Malta, Austria, Singapore and the United Arab Emirates.
Upon the results of business seminar on the virtual offshore map there also appeared Hong Kong, Luxemburg, Netherlands and UK, with their possibilities and risks for business.
Moreover during the business seminar a poll was taken in order to determine the trust level of the Ukrainian business to Cyprus. According to the poll results, 50% of participants are willing to continue to use Cyprus as the jurisdiction for doing business, 28% - not willing, 22% - do not use this jurisdiction. Answers to the question: “Will you consider Cyprus as the jurisdiction for doing business in the future (holding, financial, operating or trading company)?” were divided as follows: 59% - willing, 41% - not willing.
CONCLUSIONS AND MATERIALS OF THE BUSINESS SEMINAR:
Erik Nayman, Capital Times: «Recessionary indicator: how to avoid mistakes when choosing a new offshore»
Oleksandr Aleksyeyenko, Integrites: «Domino Effect. Collapse of bank secrecy in low-tax jurisdictions: goals, objectives, consequences»
Maksym Kodunov, Integrites: «How to Protect Foreign Investors? The Defendant Is Cyprus»
Yaroslav Abramov, Integrites: «Departure from Cyprus. Change of Business Registration»
Demetris Nicolaou, HARNEYS: «Legislative Retrospective. Analysis of Anti-crisis Laws Adopted by Cyprus»
Alexander Sokolov, Arendt&medernach: Looking for Tax Haven
Han Oortwijn, ATLAS: Looking for Tax Haven
Eugene Lai, Edwards Wildman: Looking for Tax Haven
Andrew Terry, Withers: Looking for Tax Haven