1782 Discovery Blog: U.S. Courts Remain Spilt On Allowing §1782 Discovery For International Arbitration

          The Second Circuit has reinforced the spilt among the circuits whether 28 U.S.C. §1782 may be utilized to obtain evidence for use in private international arbitrations outside the United States.  In Hanwei Guo v. Deutsche Bank Sec., 2020 U.S. App. LEXIS...

Bruce Marks Evaluates US Supreme Court Decision on Electors to RIA News

July 8, 2020 Bruce Marks comments the Supreme Court decision where state may require presidential electors to support the winner of its popular vote and may punish or replace those who don’t, settling a disputed issue in advance of this fall’s election. As the Court...

Tom Sullivan participates in the virtual book launch webinar “Obtaining Evidence for Use in International Tribunals under 28 U.S.C. Section 1782”

June 26. 2020 https://www.youtube.com/watch?v=5WtFz6j5_os Transnational discovery is a vitally important part of international litigation. An increasingly important role has been discovery in the United States of information that can be used in international and...

Changes in the Application of Double Taxation Agreements by the Russian Federation

Expected new rules pertaining to taxation at source under Russian bilateral tax treaties could apply as early as January 2021.  There is no information yet as to whether either Russia or the US extended any proposals to each other to amend the existing tax treaty....

Bruce Marks gives interview to RIA News on the suspension of Bolton’s book publication

June 16, 2020 Bruce Marks gives an interview to RIA News on the possibility of suspension of Trumps' ex-adviser, John Bolton, book publication. Justice Department sued Mr. Bolton past week to block the book's release and to demand that copies be retrieved. Officials...

Some advice from victims of voter fraud who won the day

June 11, 2020 By Bruce S. Marks and Mike Roman "El Nuevo Metodo de Votar."  The year was 1993.  Control of the Pennsylvania state Senate turned on a special election in Philadelphia.  Although the district was heavily Democratic, the...

1782 Discovery Blog: California Federal Court Upholds §1782 Discovery For Private Foreign Arbitration Impacting Silicon Valley

In HRC-Hainan Holding Co., LLC v. Yihan Hu, 2020 U.S. Dist. LEXIS 32125, at *11-12 (N.D. Cal. Feb. 25, 2020), the United States Court for the Northern District of California, which encompasses Silicon Valley, authorized  Chinese and Delaware registered companies...

1782 Discovery Blog: The Long Arm Of §1782 Discovery Is Used To Reach Documents Outside The U.S.

The Second Circuit in In re del Valle Ruiz, 939 F.3d 520 (2d Cir. 2019) and the  Eleventh Circuit in Sergeeva v. Tripleton Int'l Ltd., 834 F.3d 1194 (11th Cir. 2016) have held there is no per se bar to the extraterritorial application of 28 U.S.C. §1782 and that it...

COVID-19 Update: Russia Announces New Measure To Support Tenants (Federal law No. 166-FZ dated June 8, 2020)

It is expected that as a result of Russia’s many Covid-19 related restrictions on travel and economic activity, many commercial tenants will be unable to use leased properties to generate income to pay rent, while many landlords will continue to be obligated to make...

1782 Discovery Blog: The Second Circuit Affirms §1782 Discovery May Be Used To Obtain Documents From Outside The U.S.

In In re del Valle Ruiz, 939 F.3d 520 (2d Cir. 2019), the Second Circuit held there is no per se bar to the extraterritorial application of 28 U.S.C. §1782 and that it may be used to reach documents located outside of the United States. In the Southern District of New...

Changes in the Application of Double Taxation Agreements by the Russian Federation

by | Jul 9, 2020 | Blog

Expected new rules pertaining to taxation at source under Russian bilateral tax treaties could apply as early as January 2021.  There is no information yet as to whether either Russia or the US extended any proposals to each other to amend the existing tax treaty.  Neither country is known as a tax haven for foreign dividend income.  However, if either side exits the existing tax treaty, the taxpayers will carry the burden.

The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (“MLI”) implemented a series of tax treaty measures to lessen the opportunity for tax avoidance by multinational enterprises.  The MLI sets forth agreed upon minimum standards to counter treaty abuse and offers concrete solutions for governments to close the gaps in existing international tax rules and to modify the application of bilateral tax treaties.[1]

The MLI came into force on July 1, 2018 and already covers 94 jurisdictions.

On April 30, 2020, Russia sent the Organization of Economic Co-operation and Development (OECD) a notice of completion of internal procedures necessary for the entry into force of the MLI in respect to bilateral tax treaties with 27 jurisdictions.[2] The list includes jurisdictions which previously received a proposal from Russia to amend the current tax treaties and to increase withholding tax rate at source. Specifically, on April 13, 2020, the Russian Ministry of Finance announced that it had already approached the relevant authorities of Cyprus, Luxembourg and Malta with a proposal to set a 15% standard tax rate at source for dividends and interest income.[3] The proposals were extended in furtherance of President Putin’s request to the government to implement measures ensuring the adequate taxation of Russian-sourced dividend and interest payments that are channeled to “offshore” jurisdictions by taking advantage of loopholes in Russia’s tax treaties as part of the government’s response to the situation caused by the global pandemic.[4]

Amendments to a tax treaty require an amending protocol to be signed and ratified by both parties. Unilateral termination of a tax treaty requires a termination notice and termination is always an option under treaty provisions. There is possibility that the tax treaties with Cyprus, Luxembourg and Malta will be either amended or terminated by January 1, 2021.

Maria Grechishkina is a senior attorney in the Philadelphia office of Marks & Sokolov LLC. With over 20 years of professional experience, Ms. Grechishkina has represented Western, Russian and Ukrainian clients in complex commercial disputes, corporate and transactional matters and has provided legal opinions on Russian law to US Courts.

United States:
Marks & Sokolov, LLC
1835 Market Street, 17th Fl.
Philadelphia, PA,19103
Phone: (215) 569-8901
mgrechishkina@mslegal.com

Russia:
OOO Marks & Sokolov
21/5 Kuznetsky Most, Entrance 1, Suite 612
Moscow, 107996, Russia
Tel: +7 (495) 626-0606


[1]https://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf.

[2]http://www.consultant.ru/document/cons_doc_LAW_351967/

[3]https://www.minfin.ru/ru/press-center/?id_4=37027-minfin_rossii_napravil_pisma_ob_izmenenii_soglashenii_ob_izbezhanii_dvoinogo_nalogooblozheniya_s_lyuksemburgom_i_maltoi

[4] http://kremlin.ru/events/president/news/63061