Identification of Signs of “Business Fragmentation” in Russian Far Eastern Territories with Special Economic Status
The issue of “business fragmentation” has been relevant in Russia for over ten years. Business striving to ensure competitiveness makes it necessary to look for mechanisms to reduce the tax burden, applying special tax regimes or preferential tax conditions for residents of territories with special...
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| Format: | Article |
| Language: | English |
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Financial Research Institute
2021-06-01
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| Series: | Финансовый журнал |
| Subjects: | |
| Online Access: | https://www.finjournal-nifi.ru/images/FILES/Journal/Archive/2021/3/statii/07_3_2021_v13.pdf |
| _version_ | 1819283789674708992 |
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| author | Olga A. Sinenko Timofey P. Mitrofanov |
| author_facet | Olga A. Sinenko Timofey P. Mitrofanov |
| author_sort | Olga A. Sinenko |
| collection | DOAJ |
| description | The issue of “business fragmentation” has been relevant in Russia for over ten years. Business striving to ensure competitiveness makes it necessary to look for mechanisms to reduce the tax burden, applying special tax regimes or preferential tax conditions for residents of territories with special economic status. In this paper, the authors analyze the theoretical prerequisites for substantiating the signs of “business fragmentation,” and study the scope of application of “business fragmentation” schemes within the framework of preferential tax conditions for territories with special economic status in the Far East. The basic research methods were content analysis, comparative analysis and synthesis. As a result of the content analysis of judicial practice, the criteria for business fragmentation, confirming the formal division of a business, were substantiated. The authors carried out a comparative analysis of resident companies and identified, based on open data, 159 residents of priority social and economic development areas (PSEDAs) and 625 residents of the Free Port of Vladivostok (FPV) with signs of “business fragmentation.” Those amounted to 28.49 % and 29.48 % in the total number of active residents, respectively. Vladivostok is the leader in terms of the number of residents with signs of “business fragmentation,” with 443 residents of the FPV. The most common signs of “business fragmentation” among resident companies in territories with a special economic status of the Far East are substantiated: common persons managing companies, common or identical type of activity, and common address of location. Common types of activity among resident companies with signs of “business fragmentation” within territories with special economic status of the Far East are warehousing and auxiliary transport (15 % of PSEDA; 12.3 % of the FPV); construction of buildings (16.5 % of the FPV); and operations with real estate (14 % of the FPV). |
| first_indexed | 2024-12-24T01:37:04Z |
| format | Article |
| id | doaj.art-432fff7f92254458bfddd4d511999573 |
| institution | Directory Open Access Journal |
| issn | 2075-1990 2658-5332 |
| language | English |
| last_indexed | 2024-12-24T01:37:04Z |
| publishDate | 2021-06-01 |
| publisher | Financial Research Institute |
| record_format | Article |
| series | Финансовый журнал |
| spelling | doaj.art-432fff7f92254458bfddd4d5119995732022-12-21T17:22:08ZengFinancial Research InstituteФинансовый журнал2075-19902658-53322021-06-0113No. 38810310.31107/2075-1990-2021-3-88-103Identification of Signs of “Business Fragmentation” in Russian Far Eastern Territories with Special Economic StatusOlga A. Sinenko0https://orcid.org/0000-0001-7497-9475Timofey P. Mitrofanov1Far Eastern Federal University (FEFU), Vladivostok 690922, Russian FederationFar Eastern Federal University (FEFU), Vladivostok 690922, Russian FederationThe issue of “business fragmentation” has been relevant in Russia for over ten years. Business striving to ensure competitiveness makes it necessary to look for mechanisms to reduce the tax burden, applying special tax regimes or preferential tax conditions for residents of territories with special economic status. In this paper, the authors analyze the theoretical prerequisites for substantiating the signs of “business fragmentation,” and study the scope of application of “business fragmentation” schemes within the framework of preferential tax conditions for territories with special economic status in the Far East. The basic research methods were content analysis, comparative analysis and synthesis. As a result of the content analysis of judicial practice, the criteria for business fragmentation, confirming the formal division of a business, were substantiated. The authors carried out a comparative analysis of resident companies and identified, based on open data, 159 residents of priority social and economic development areas (PSEDAs) and 625 residents of the Free Port of Vladivostok (FPV) with signs of “business fragmentation.” Those amounted to 28.49 % and 29.48 % in the total number of active residents, respectively. Vladivostok is the leader in terms of the number of residents with signs of “business fragmentation,” with 443 residents of the FPV. The most common signs of “business fragmentation” among resident companies in territories with a special economic status of the Far East are substantiated: common persons managing companies, common or identical type of activity, and common address of location. Common types of activity among resident companies with signs of “business fragmentation” within territories with special economic status of the Far East are warehousing and auxiliary transport (15 % of PSEDA; 12.3 % of the FPV); construction of buildings (16.5 % of the FPV); and operations with real estate (14 % of the FPV).https://www.finjournal-nifi.ru/images/FILES/Journal/Archive/2021/3/statii/07_3_2021_v13.pdfbusiness fragmentationfree port of vladivostokpriority socio-economic development areasfar easttax riskstax incentives |
| spellingShingle | Olga A. Sinenko Timofey P. Mitrofanov Identification of Signs of “Business Fragmentation” in Russian Far Eastern Territories with Special Economic Status Финансовый журнал business fragmentation free port of vladivostok priority socio-economic development areas far east tax risks tax incentives |
| title | Identification of Signs of “Business Fragmentation” in Russian Far Eastern Territories with Special Economic Status |
| title_full | Identification of Signs of “Business Fragmentation” in Russian Far Eastern Territories with Special Economic Status |
| title_fullStr | Identification of Signs of “Business Fragmentation” in Russian Far Eastern Territories with Special Economic Status |
| title_full_unstemmed | Identification of Signs of “Business Fragmentation” in Russian Far Eastern Territories with Special Economic Status |
| title_short | Identification of Signs of “Business Fragmentation” in Russian Far Eastern Territories with Special Economic Status |
| title_sort | identification of signs of business fragmentation in russian far eastern territories with special economic status |
| topic | business fragmentation free port of vladivostok priority socio-economic development areas far east tax risks tax incentives |
| url | https://www.finjournal-nifi.ru/images/FILES/Journal/Archive/2021/3/statii/07_3_2021_v13.pdf |
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