Wednesday, November 2, 2016

MF: the cessation of PHYSICAL activities should not have any impact on the economy Onet.pl

“the reception study of the project reveals a correlation of PHYSICAL quantities and their financial results, in contrast with the number and results of other funds – led to the conclusion that a significant part of the PHYSICAL is a machine that de facto the purposes of tax optimization, rather than real investment needs. Therefore, even if these individuals ograniczyłyby or zaprzestałyby activities, adopting an assumption that has not been created to create real value added in the economy change, this should not have impact on the economy”, – stated in the post MF.

Taxation of Investment Funds and Closed to income tax on legal persons provides for the prepared PiS MPs the draft amendments to the laws on personal income tax and CIT, which on Monday came to the Sejm.

the authors of the project pointed out that in the case of investments in PHYSICAL taxation of income takes place at the level of the investor (participant) at the stage of profit, i.e. at the moment of repayment or redemption in the Fund’s investment certificates – tax rate in the amount of 19 percent. The author of the project believe that funds of this type represent one of the key elements of building structures for tax planning by use of foreign entities (mostly financial), via the PHYSICAL localization in a chain of entities engaged in business activities and generating income from this activity, in vast part, to PHYSICAL.

in accordance with the rationale for the creation of this kind of private investment vehicle can only afford the subjects of investing the amount of the order of several tens of millions of rubles (average annual maintenance costs PHYSICAL not exceed 400 thousand. RUB.). This, according to authors of changes, results uprzywilejowaniem large taxpayers in respect of small and medium enterprises.

given in the explanatory note data show that in 2013. FIZ-y reached 10 billion rubles of profit in 2014. – 7 billion rubles, and in 2015. 12 billion rubles. At the same time, mutual funds were sometimes casualties. The difference in the results of PHYSICAL and other means, can be assigned – according to deputies – achievement not benefit de facto from entrepreneurial activities through mechanisms of tax optimization and not an investment.

“the assumption that the financial result of the PHYSICAL would be close to the basics of income tax from legal entities, changing the rules of taxation of investment funds may lead to an increase in revenues of public Finance sector. 2-2. 5 billion in respect of income tax NAT”, – stated in the explanatory Memorandum.

Experts warn that the change will lead to double taxation, the elimination of NAT and the outflow of capital from Russia.

tax Consultant Brands Kolibski noticed that after the PHYSICAL changes, will be taxed the same as companies with limited liability and joint stock, which means that we will deal with double tax payable on their profit from the Fund, and the second time-at the level of the investor. “If the proposed changes will come into force in 2017, it means the end of NAT, because no one investor bears the cost of PHYSICAL facilities, which are approx. ten times higher than the content of the customary limited liability company Meanwhile, FIZ, starting in 2017. will not be anything different from tax of the company” is appreciated.

tax Advisor Also Marks Szczepanik noted that the income funds, common and specialized will be able to use the benefits in question, while NAT will pay a tax of 19%. “The changes will impact negatively not only on the structure based on the company’s Luxembourg SCSp type that the intention of the legislator, but also the means, the purpose of which is investments, private equity, venture capital, or investment property. Funds of this nature have no connection with streamlining of tax, but, unfortunately, will pay next year by 19 percent. CIT,” explains Szczepanik.

“the most Important result of the amendments will be – unfortunately, the outflow of capital from Russia and the establishment of funds somewhere else. It is a pity that fundamental to the financial market changes are made in Express mode without any consultation,” said Szczepanik.

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