Digital formats of sanctions circumventing: social and economic analysis

The purpose of the study is to analyze redomiciliation process as one of the most effective digital formats for overcoming sanctions restrictions, to show the economic risks and social issues associated with companies’ registration in offshore zones, as well as to characterize the latest trends in the state deoffshorization, which are observed under sanctions restrictions. The factors of increasing popularity of domestic offshore zones and the most pressing issues faced by international holding companies with Russian upbringing have been revealed. The main reasons for the demand for of domestic offshore zones growth under the Russian jurisdiction have been shown, and the main social risks for entrepreneurs have been studied. The research methodology is based on the provisions of taxation concepts presented in the works of A. Smith, D. Ricardo, J.M. Keynes, and A. Hansen. The deoffshorization concept is based on the ideas of A.S. Zakharov, I.Z. Yarygina, B.A. Heifetz et al. The analysis of legislative acts of the tax system has been carried out, tax regimes, corporate structures, and requirements to organizations management have been studied. Reporting documents of investment funds, IT companies, and banking organizations, as well as sociological, economic, and legal scientific publications were used as the study materials. On the basis of regulatory legal acts of the Russian legislation, the authors analyze the conditions offered to companies by tax institutions within the framework of re-registration in domestic offshore zones in comparison with the conditions offered by the authorities of other countries. A tendency of increasing inflow of a number of companies to offshore zones has been revealed, among which there are primarily IT corporations, which can ensure the Russian economy growth in the next few years. The main social risks associated with digital formats of overcoming sanctions restrictions have been identified: social inequality, reputational risks, and consequences of illegitimate circumvention of sanctions restrictions. The study touches upon the situation of Russian organizations registered abroad.