A Forum on The Integration of the Financial Markets of the Common Economic Space (CES) Member States

Korniyenko N. made a report on The Prospective Lines of Development of the National Tax Legislation of the Customs Union and the Common Economic Space Member-States as part of a discussion panel on International Taxation, Counteracting the Legalization of Money Laundering, Proceeds of Crime. The report contained proposals which were made on the basis of the results obtained during a comparative analysis of the tax legislation of the Customs Union (CU) member states and the comparison with the best international practices. The expert pointed out that the currently existing CU contractual framework contains no provision for harmonization of direct taxation. Integration processes require harmonization of the national legislation, adoption of unified rules within the cross-border space to ensure free capital movement, etc. It is reasonable to approximate legal approaches in identification of residents, taxation of dividends, rules for controlled foreign companies, adoption of international-level procedures for the application of treaties on avoidance of double taxation. The approximation of approaches will allow cross-border transactions to be simplified within the CU and fiscal control measures to be applied more efficiently.

Velikova E. made a report on Enhancing Taxation of Individuals in the CU and CES Member States. The report was dedicated to the differences in approaches to taxation of the income of labor migrants within the CU and CES Member States, contradicting the principle of free labor force movement within the CES, and contained proposals on how to cope with such differences.

Korniyenko N. also made a report on Taxation Aspects of Counteracting Capital Outflow, the Deoffshorization Issues at the section Harmonization of the Deoffshorization Fiscal Policy. Capital Export, Counteracting the Legalization of Proceeds of Crime. The report was dedicated to the differences between the legislations of the CU member states in the measures counteracting capital export from the CU and CES Member States to other countries. Additionally, the report described specific features of investment flows to countries providing a preferential tax treatment and the volume of reinvestment from offshore jurisdictions. Removing barriers to the development of a common market within the CES was considered the key factor constraining the development of the fiscal component, according to the speaker. The report contained proposals on reciprocal consideration of measures of anti-offshore regulation, while a special focus was placed on the practice of application of the Tax Code in the Republic of Kazakhstan.