BNP Paribas made an error while distributing profits

The tax officials have questioned the lawfulness of the widely used support rendered by global banking groups to their Russian subsidiaries. The FTS deemed the exceeded payment, which the Russian БНП Париба transferred to the head office of BNP Paribas against security by the group, as tax evasion. Such position was supported by the court. The experts say that whether the tax officials will make claims to other banks will depend on how market-corresponding their relations with the head companies are <...>

Maxim Rovinskiy, Partner of the Law Firm "YUST", points out: “This is the story of how important the sense of harmony is. Of course, the bank would be unable to issue any large credits in Russia at all without the security from the shareholder, but it fully levelled the income by disputable expenses, thus leaving Russia without the taxes from those operations”.