Oracle in Russia may “lose weight”: the Federal Tax Service plans to remove a subsidiary from the Unified State Register of Legal Entities


    Photo: Reuters / Susana Bates

    Oracle for more than a year has not filed tax reports on its Russian division, Oracle Computer Hardware CJSC. This subsidiary company was engaged in the sale of Oracle Hardware hardware to Russian customers, Kommersant writes . The relevant information was published by the Federal Tax Service (FTS) for the city of Moscow in the Bulletin of State Registration and the kartoteka.ru service . According to the agency, the company not only did not provide financial statements for more than a year, but also did not conduct operations on its bank accounts. Oracle Computer Hardware represents the Oracle Hardware hardware business, which the company acquired in 2010 from Sun Microsystems.

    If, within three months from the date of publication of this message, the agency does not receive applications from persons whose rights or interests are affected by this decision, the company will be removed from the Unified State Register of Legal Entities. Interestingly, Oracle’s Russian ZAO brings in about $ 140 million in revenue.

    According to some experts, Oracle simply minimizes the work of its division in Russia, and does not forget to submit reports. “Oracle has a small part of the revenue from equipment, so business optimization is quite possible,” one of the top managers in the domestic IT market comments on the situation. At the same time, Mikhail Alexandrov, a partner at A2 Law Firm, still considers the passivity of the corporation with regard to the Russian subsidiary strange. At the same time, a prolonged failure to submit tax reports may threaten the company with blocking the account and the appointment of an on-site tax audit.

    In addition to Oracle Computer Hardware, in Russia Oracle has another legal entity, Oracle Development Spb LLC. This is the Oracle development center in St. Petersburg. At the same time, all contracts for Oracle licenses and technical support are concluded with the Irish Oracle East Central Europe Ltd. and Dutch Oracle Netherlands BV “This is the usual practice of foreign companies in Russia. Even SAP and Microsoft, which have local legal entities, carry out major sales through partners who work directly with their foreign “daughters,” says Anton Sushkevich.

    Now US sanctions and some other factors lead to the fact that well-known IT companies are reducing their presence in Russia. The Adobe representative office is now being liquidated, the Skype developers office in Zelenograd has been closed, and the Google development center in St. Petersburg has been closed.

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