Swedish Ambassador urged Russia not to put pressure on Oriflame

Poor investment climate could force Swedish companies to withdraw from the country.
Swedish Ambassador in Moscow Veronika Bard Bringus urged Russia to remove obstacles to the work of Swedish companies - otherwise there is the risk that the businesses will go to the Russian market, the "Prime" agency. According to the ambassador, in the Russo-Swedish relations "have stimuli." "If they can be removed, would be achieved a significant effect," - she said at a meeting with Chairman of the Federation Council's international affairs committee, Konstantin Kosachev.

One of the "stimulus" - the situation surrounding the Swedish cosmetics company Oriflame and a lawsuit for back taxes. Bringus noted that the company is creating a lot of jobs for the Russians. "Despite the fact that the company has invested millions of kronor in Russia, for it creates the problem of the tax office and other branches of the Russian government, including continuing to demand that the company paying the royalties, despite the fact that there is a judgment that they do not have . to do this, and these requirements are not consistent with international law in such a difficult time, it can lead to the fact that Russian will lose their jobs "- the talela ambassador.

"We're talking about 400 Swedish companies that operate in Russia. Many of them have made a very significant investment, are located here production, but, unfortunately, the climate for business is not improved. These are companies that do not just come to make money, they have contributed to Russia and want to work here, but if they feel created by the power problem, they may change their minds, "-. said the diplomat.

In mid-February Oriflame reported a reduction of revenue in 2014 by 10% to 1.26 billion euros, including due to the instability in the Russian and Ukrainian markets, as well as due to the devaluation of the ruble and hryvnia. Adjusted net income Oriflame decreased by 44.3% to 47 million euros in connection with the cost of tax claims in Russia in the amount of 6.4 million euros, the cost of tax claims in respect of VAT in Russia amounted to € 8.1 million.

In late November last year, the Moscow Arbitration Court upheld the tax authorities in a dispute with the "daughter" Oriflame - LLC "Oriflame Cosmetics". The company argued the Moscow Department of the Federal Tax Service (FTS). It must "; Oriflame Cosmetics "to pay more than 530 million rubles. income tax and penalties for 2009-2010.

Tax after on-site inspections in 2013-2014. decided that under the guise of royalties the company reduced the tax base for income tax and unpaid assessed that, in their opinion, taxes and penalties. The Russian "daughter" paid for trademarks and other Dutch Oriflame Oriflame Kosmetiek, the main legal owner of these signs -. Luxembourg Oriflame Cosmetics. Tax after inspection found that the Luxembourg company indirectly controlled Russian and conclusion of license agreements and the payment of billions of dollars in royalties is a way to tax evasion. «Oriflame remains confident in its proper handling taxes in Russia and continues to defend its position in the Supreme Arbitration Court", - stated the company in its reporting.