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A New Private Art Museum Opens in Moscow 28 Russian Painting & Sculpture of the Silver Age 30 advertising CONTENTS 6 Editor's choice Pelageya: Let's come together 6 Russian treat 6 Legend pays a visit 7 George Michael 7 8 Shopping news Debenhams opens flagship store in Moscow 8 Mail Boxes Etc opens its first Moscow store 8 Rolls-Royce opens a new showroom 8 9 Special report Welcome to Singapore 9 Singapore and Russia, an Encounter 10 People and Words 14 Russian's Special Economic Zones 15 Getting there 16 Where to stay 18 Food industry has eyes on Russia 20 Singapore Airline grows far beyond its island base 22 Singapore is perfect for relaxing 24 25 Business features Students show their skills in advertising 25 David Whitehouse, Savant 26 28 Art A new private Art museum opens in Moscow 28 Russian painting & sculpture of the Silver Age 30 31 Features Hiking the Caucasus mountains 31 Student's view from the provinces 32 34 Hospitality news Blooming Sakura 34 Yuri Navarro goes it alone 34 Scandinavia Cafe opens for summer 34 Marriott is 80 years old 34 35 Wine & Dine Fetish 35 Around the World with Shiraz 37 Ichiban Boshi 41 Adrian Quetglas 42 52 Out & About Moscovites and the English Toast St. George 52 Commercial Real Estate Moscow Awards 2007 52 40 years of Malaysian-Russian Relations hailed 53 Land Rover 54 Novotel Sheremetyevo 15th anniversary 55 06 2007 LETTER FROM THE PUBLISHER Our cover story this month is a Special Report on Singapore. The catalyst for this was the second Russia-Singapore Business Forum held in Singapore in March which attracted a host of high-level Russians, including Herman Gref, Minister of Economy and Trade, the Prime Minister of Tatarstan and business magnate Oleg Deripaska. The forum is the brainchild of Singapore’s Ambassador to Russia, Michael Tay, who graces our cover. The forum celebrates a growing relationship between the tiny City State in South-East Asia and the giant Russian Federation. In this relationship, Singapore is definitely punching well above its weight and holding its own. The meteoric economic progress that Russia is making and the quick switch from a developing nation to a developed nation is epitomized by the maturity apparent in the country’s real estate market. We are pleased to highlight this trend through a report by Jones Lang LaSalle that we reprint in this issue, plus a profile of Savant, the construction services company, by James Blake our business writer. We were unable to resist the temptation of Arkady Novikov’s continuously grow- ing chain of restaurants, so this month we review JuJu restaurant where the Brother- hood of Knights of the Vine Russia held their monthly wine tasting, sampling differ- ent wines from around the world based on the Shiraz grape. Taking a look at the restaurant business, we interview Taki Tsutsui, who is oversee- ing the development of the RE&S holding company’s Ichiban Boshi chain of restau- rants in Moscow and who has just added a second brand, Tsvetenie Sakury, a Japanese fine dining outlet to complement their democratically positioned Ichiban Boshi. Closer to home our travel feature this month takes us to the mountains of the Caucasus and given their proximity to Sochi, they are a lot closer than many of us in John Ortega Moscow might think. Owner and Publisher Shopping choices continue to grow in Moscow, and across Russia. After the ultra- expensive designer names have all secured their place in the local market, the “next wave” of retailers is moving in, and Shopping News tells us who! Natalia Shuvalova not only tells us the events we should not miss this month in Editor’s choice but unearths a young Russian businessman, Igor Markin, who is creat- ing the first private Art Museum since the heady days of Tsarist Russia. That is defi- nitely a ‘must see!’ moscow telephone codes change Dear readers please note that since the beginning of 2007 the stationary telephone codes were changed. Now there are 2 codes functioning: -495 and -499. For those who have 495 code: out of 495 you dial. To 495 – 7 digits. To 499 – 8 (499) 7 digits. To mobile – 8 (code) 7 digits. For those who have 499 code: out of 499 you dial. To 499 – 499 7 digits To 495 – 8 (495) 7 digits. To mobile – 8 (code) 7 digits. In any combination of numbers the call is considered and billed as local. general director and publisher contributors John Ortega, 784-2834 Alex Ferrier, Anne Coombes, Edie Gibson, Annet Cover photo for Passport by Serge Golovach [email protected] Kulyagina, Charles Borden, Linda Lippner, editor-in-chief Steve Walden, Natalia Shuvalova John Bonar, 959-2873, 8 (916) 544-8073 proof reader [email protected] Ian Mitchell assistant editor Anna Kulyagina, 959-2271, 8 (903) 243-1318 designer [email protected] Marina Orlova wine and dining editor [email protected] Charles Borden photographers [email protected] Serge Golovach, Evgeniya Ksenofontova, contributing editor Ruslan Sergeev Daniel Klein webmaster [email protected] Alexey Timokhin business writer James Blake [email protected] [email protected] accounting and legal services copy editor Vista Foreign Business Support Linda Lippner, 728-5000 ext. 5834 Trubnaya Str. 25/1, Moscow, (495) 933-7822 Circulation 40,000. Readers 80, 000. Published by OOO Passport Magazine. All rights reserved. This publication is registered by the Press Ministry No. 77-18639. 08.10.04 Editorial Address: Ozerkovskaya Embankment, 50 Bldg. 1. Office 515. 5th floor. 115054 Moscow, Russia Tel: (495)959-2332, (495) 959-2875, (495)959-2271, Fax: (495) 221-2677 www.passportmagazine.ru 06 2007 BOTTOM LINE 16 Schemes for evading taxes highlighted by Tax Service By Tatyana Chebotareva The Federal Tax Service has sent to all its local offices instructional guidelines describing "16 Typical Schemes for Evading Taxes." Judging by this document, inspectors are most concerned with evasion of value-added tax (VAT) and profit tax. These guidelines were issued "for inter- intermediaries, thereby increasing prices and thus borrowed too much. The loan was nal use only", but Alinga Consulting was and the amount of VAT subject to reim- never repaid. able to obtain information about all 16 bursement, will be considered suspicious Scheme #10: Fictitious Leasing. schemes, captured from an Internal Docu- by the tax inspectors. For example, prices In another case described in the docu- ment of the Federal Tax Service. may be considered artificially inflated if ment, a company leased a combine, pay- Scheme #1: Fictitious Activity through the production cost of export goods was ing the lessor in advance. The lessor was Interdependent Entities. significantly increased as a result of pro- affiliated with the client and the advance The Tax Service will challenge organi- cessing raw materials and the commissions payment was not provided for in the agree- zations that conduct financial operations paid to these processors. ment. exclusively through groups of interdepen- Scheme #7: Internal Accounts Paid Us- Scheme #11: Replacing Wages with dent entities. ing Contributions to Charter Capital. "Medical Insurance." Scheme #: Closed Systems for Circulat- The tax authorities will deny deductions The guidelines cite a case where a com- ing Goods and Money. of "internal" VAT between interdependent pany concluded an agreement for volun- In this situation inspectors will trace the companies. In this scheme a company pays tary medical insurance which included a supply chain up to the fourth level, uncov- its suppliers with funds received from its provision covering employee meals. ering fictitious contractual parties in the parent company in the form of contribu- Scheme #1: Using Civil Contracts in process. tions to charter capital. However, the par- Place of Labor Contracts. Scheme #3: Money Transfers Through ent company itself has received the money If the tax inspectors see that a civil con- "Gray" Firms. from its founders, who turned out to be tract is being used as a labor contract, it will The Tax Service encourages denying those very suppliers. The company thus be considered intentional tax evasion. export VAT refunds if the supply chain in- pays its suppliers with their own money, Scheme #13: Artificial Creation of Penal- cludes a "gray" (fly-by-night, suspicious) says the Tax Service, so the Tax Service en- ties through Contractual Obligations. firm that transfers money received from a courages denying reimbursement of VAT Knowingly creating unrealistic condi- buyer to the account of its foreign partner for such operations. tions for fulfilling a contract for the pur- and in the process does not pay VAT on the Scheme #8: Unjustified Use of Credits pose of reducing taxes by the amount of amount transferred. Similarly, extra atten- for the Disabled. financial sanctions is also considered to be tion is given if money is transferred under Inspectors will verify the conditions un- considered intentional tax evasion. contract with a "gray" firm and the money is der which methods were implemented for Scheme #1: Personnel Leasing. then returned via a private businessman. using disability credits for VAT payments. Documenting employees through orga- Scheme #: Using Cash Registers for Scheme #9: Acquisition of Goods with nizations using preferential tax systems is Wholesale Transactions. Inflated Prices Using Borrowed Resourc- regarded by the tax authorities as tax eva- The Tax Service will actively repress at- es. sion. tempts to use the preferential Unified Tax The FNS document describes a case Scheme #15: Splitting a Business for the on Imputed Income for wholesale transac- where a logging company acquired equip- Purpose of Using the Unified Tax on Im- tions. ment on credit obtained from an off-shore puted Income. Scheme #5: Reorganization with Subse- firm. Having gathered information from the If two companies have practically identi- quent Liquidation.
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