Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Russia Scraps Capital Gains Tax Hoping To Attract Investment

Recommended Posts

http://globaleconomicanalysis.blogspot.com/2010/06/russia-scraps-capital-gains-tax-hoping.html

The BBC reports Russia to drop capital gains tax to attract investment

Russia will scrap capital gains tax on long-term direct investment from 2011, President Dmitry Medvedev has said. Mr Medvedev said that in terms of improving Russia's investment climate "we, I hope, are moving forward".

He also said the number of "strategic" firms, in which foreign investment is restricted and which cannot be privatised, would fall from 280 to 41. Mr Medvedev has been promoting the idea of "modernisation", including diversifying the Russian economy.

Also, many investors have been wary of coming to Russia because of corruption and the dominant role the state plays in Russia's business life. Mr Medvedev told the St Petersburg International Economic Forum that long-term direct investment was "necessary for modernisation".

Russia Doing Something That Makes Sense

"OM" who sent me the article writes "At least someone in the world is starting to do something correctly. I never understood why so much creativity is being applied to taxing productive activities and rewarding detrimental, costly and non-productive activities."

Bingo

It remains to be seen if Russia is serious and can be trusted. Nonetheless, the idea is sound. However, a better idea would be to reduce corporate income tax in the US while ending deferral of corporate taxes held overseas.

The race to the bottom starts to get interesting. Although I'm not certain I would trust the Russians as you might get up getting shafted.

Share this post


Link to post
Share on other sites

http://globaleconomi...tax-hoping.html

The race to the bottom starts to get interesting. Although I'm not certain I would trust the Russians as you might get up getting shafted.

Wow, great!

Anyone know if they've scrapped the

- Police tax

- Judge Tax

- Mafia tax

- Putin retirement fund contribution

- Life protection contribution

- Get out of jail licence?

If they cut those too one might consider risking his life to do business in Russia.

Share this post


Link to post
Share on other sites

It's the old east-v-west thing again.

The US already has their clammy hands over 90% of the tax exile states and shelters.

Now Russia wants to 'legally' bring em in.

Should prove interesting.

Buying shares in the secondary Market is not a direct investment. Uk has similar scheme with vcts.

Share this post


Link to post
Share on other sites

http://globaleconomicanalysis.blogspot.com/2010/06/russia-scraps-capital-gains-tax-hoping.html

The race to the bottom starts to get interesting. Although I'm not certain I would trust the Russians as you might get up getting shafted.

CGT is the least of anyones problems in Russian. It is not unkonwn for a foreighn investor to start up a new business, become sucessful and then see the state just take it away from them.

tim

Share this post


Link to post
Share on other sites

CGT is the least of anyones problems in Russian. It is not unkonwn for a foreighn investor to start up a new business, become sucessful and then see the state just take it away from them.

tim

some States do this better than others

Edited by lowrentyieldmakessense(honest!)

Share this post


Link to post
Share on other sites

CGT is the least of anyones problems in Russian. It is not unkonwn for a foreighn investor to start up a new business, become sucessful and then see the state just take it away from them.

tim

Any examples, or are you just promulgating urban myths?

Share this post


Link to post
Share on other sites

It's not quite as advertised is it. The asset is being purchased for £465 million, and the pressure put on the company was as a result of their seeming inability to do anything with the asset, which seems to have been a result of their reluctance to make the necessary investment.

Share this post


Link to post
Share on other sites

Wow, great!

Anyone know if they've scrapped the

- Police tax

- Judge Tax

- Mafia tax

- Putin retirement fund contribution

- Life protection contribution

- Get out of jail licence?

If they cut those too one might consider risking his life to do business in Russia.

I will let you know the first time I have to pay any of these...

Share this post


Link to post
Share on other sites

Wow, great!

Anyone know if they've scrapped the

- Police tax

- Judge Tax

- Mafia tax

- Putin retirement fund contribution

- Life protection contribution

- Get out of jail licence?

If they cut those too one might consider risking his life to do business in Russia.

Well admittedly in the UK under labour that was much easier, a large donation to the labour party would open all doors.

Seems the royal family isn't immune of corruption either, given the recent News of the World scoop.

Share this post


Link to post
Share on other sites

CGT is the least of anyones problems in Russian. It is not unkonwn for a foreighn investor to start up a new business, become sucessful and then see the state just take it away from them.

tim

I have a friend who now runs a hedge fund concentrating on Russia. He initially went over there in early 1993 as an economic advisor.

Boy, does he have some stories. Hand grenade thrown through the window of his bedroom. Having to pay the mafia to get his girlfriend's child back etc. etc. etc. (Also had a story from before he started the hedge fund about one of his bosses being murdered...but not by the Russians. ;) )

Share this post


Link to post
Share on other sites
Guest sillybear2

Capital gains tax in Russia is often 100%, if you set up a successful venture you will be driven out of the country and the government will cease your assets, take TNK-BP for example.

Share this post


Link to post
Share on other sites
Guest sillybear2

It's not quite as advertised is it. The asset is being purchased for £465 million, and the pressure put on the company was as a result of their seeming inability to do anything with the asset, which seems to have been a result of their reluctance to make the necessary investment.

They couldn't develop the asset because Russia refused permission to build pipelines to markets where the product is in demand, namely China. Catch 22.

Share this post


Link to post
Share on other sites

They couldn't develop the asset because Russia refused permission to build pipelines to markets where the product is in demand, namely China. Catch 22.

Might it not have been wise to secure such agreements prior to securing the asset?

Share this post


Link to post
Share on other sites

Well admittedly in the UK under labour that was much easier, a large donation to the labour party would open all doors.

Seems the royal family isn't immune of corruption either, given the recent News of the World scoop.

There's corruption and institutionalised thuggery. Russia excels at the later.

Share this post


Link to post
Share on other sites

Might it not have been wise to secure such agreements prior to securing the asset?

Agreements aren't worth the paper they are written on when dealing with a government like Russia's.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 142 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.