President of Ukraine

Petro Poroshenko: We must make a few steps for the efficient, prompt and profound de-offshoring

10 April 2016 - 20:02

Petro Poroshenko: We must make a few steps for the efficient, prompt and profound de-offshoring

President Petro Poroshenko told about the steps in the process of de-offshoring and introduction of transparent business rules in Ukraine that will take place shortly.

“The attempts to ban the offshore companies resulted in the increase of their number. It is a dead end. I would like to tell about a few steps that we must make to implement efficient, prompt and profound de-offshoring,” Petro Poroshenko noted in the interview with Ukrainian TV channels.

The Head of State instructs the Ministry of Finance and the State Fiscal Service to ensure Ukraine’s accession to the International Interagency Convention on Ensuring Access of Ukraine to the Non-Resident Accounts. After the signature of the convention, which must take place not later than January 1, 2017, Ukraine will automatically receive information from all over the world about the accounts opened by Ukrainian residents in any bank of the world, as stated by the President.

Petro Poroshenko regrets that nobody raised this issue before.

The Head of State will submit draft laws to the Parliament shortly to establish the status of foreign-controlled companies. These innovations will provide for the following: irrespective of the country of registration of the company, it must pay taxes to Ukraine if it directly or indirectly belongs to the Ukrainian resident and if the level of taxation in this country is twice or more less than that of the Ukrainian taxation.

Additionally, harmonization of tax legislation must be held.

Petro Poroshenko emphasized the necessity of ensuring the adoption of the constitutional judicial reform in the Parliament, which will provide an opportunity to create a transparent and efficient judicial system with full reboot of the court system, adoption of a new edition of the law on judicature and ensuring the right to a fair trial for Ukrainian citizens and Ukrainian business.

Also, de-offshoring actions include completion of the anti-corruption legislation’s implementation, improvement of the investment climate, adoption of the legislation on the possibility of returning Ukrainian assets. “They will increase government revenue, increase transparency and create totally transparent rules for any person who wants to do business abroad,” the Head of State stressed.

Petro Poroshenko is grateful to the journalistic consortium that consists of 800 journalists from 40 countries that “have done an extremely great job to make the world more transparent, to make the financial world different”. “I can welcome it, because people participated in the Revolution of Dignity for these opportunities. Ukrainian journalists also worked in the consortium. I emphasize that after these events, the financial world will never be the same again,” the President noted.

Petro Poroshenko has once again emphasized that his position was completely different from that of the rest of the persons included in the list published by the journalistic consortium.

“I have publicly instructed my legal and financial advisors to create a structure in coordination with one of the biggest investment structures of the world in order to place my assets into trust. Now I can reveal this information - it is Rothschild. It is not just management. For today, I am deprived of any opportunity to influence or receive information. It is guaranteed by several hundred years of history of the Rothschild Group,” the President stressed.

According to the Head of State, this company has been created only to place the assets into trust, just as it was promised during the election campaign. “The company has no financial transfers. Its statutory fund hasn’t been filled as well. After the agreement takes effect, the company’s management will be substituted for representatives of the Rothschild. Neither me, nor my representatives will have an influence on them,” the President assured.

“My position confirms that my steps have been aimed at full transparency and meeting the tax interests of Ukraine. The taxation of the assets in trust ownership will be held under the Ukrainian legislation,” Petro Poroshenko emphasized.

The Head of State noted that the signature of the agreement had taken place on January 14 after long consultations.

“Thus, an absolutely transparent structure has been created. Its purpose is to detach my biggest assets from the politics. And it is ensured by one of the most respected institutions in the world,” the President said.