Russia received access to information about their nationals ‘ accounts in over 80 countries

Russia signed the international agreement on the automatic exchange of financial information, said the representative of the Federal tax service. “In 2018 Russia joins the system of automatic exchange of tax information between tax authorities of different countries. This will allow us to obtain data on the financial accounts of taxpayers from more than 80 jurisdictions, including the so-called offshore companies. On today signed an agreement, this means that the opportunities of committing tax fraud will be less,” — said in the comments of the head FNS of Michael mishustina, arrived in .

We are talking about the so-called multilateral Agreement competent authorities on the automatic exchange of financial information. To date it has been signed or agreed to sign over 100 jurisdictions, including such popular offshore jurisdictions like Panama, British virgin Islands, Jersey, Belize.

The agreement is part of a global plan by the OECD to combat tax evasion. Tax Treaty countries will automatically exchange information annually, according to the established standard. A uniform standard of exchange of information (CRS) assumes that financial institutions provide information about the financial accounts of the resident to the tax authority of his country, and the tax authorities on a bilateral basis for sharing this information.

In fact, Russia will begin to share financial information with only 2018. In practice, this means that foreign banks, insurance companies, brokers, depositaries, management companies, which will operate the agreement with Russia, by September 2018 for the first time will provide on information on the financial accounts of Russian individuals—tax residents, as well as companies and organisations without a legal entity, the beneficiaries of which are the Russians, says EY partner Irina Bykhovskaya. The same thing should be done and Russian banks and other financial institutions. Information about the tax residency of the customers they will be obliged to transfer to foreign tax authorities. The mediator in this case will act on.

Offshore financial institutions are discussed in light of the scandal with the leak of “Panama records”, will also soon begin to provide information about the tax residency of its clients. That Panama, along with Bahrain, Nauru, Vanuatu and Lebanon, have pledged to join the agreement, announced yesterday by the OECD. Interviewed tax consultants point out that owners of foreign assets a year ago began to think about whether to save them to a foreign company or structure. And for many “Panamanian dossier” was an additional impetus, as it became obvious how fragile can be the “secret offshore”, said Advisor to the tax practice of law Bureau “Egorov, Puginsky, Afanasiev and partners” Igor Shikov.

The Russian government notes that Russia’s accession to the international automatic exchange of information will provide an important tool for achieving the goals to reduce the shadow economy and combating the use of illegal schemes of profit withdrawal from Russia,” the message of the government dated 5 may.