Russian Federal Tax Office to collect data from low-tax jurisdictions

The Russian Federal Tax Office will soon be entitled to request data on taxpayers from offshore jurisdictions, the Russian business daily Kommersant wrote on Aug. 19.

“Russian tax authorities will soon be able to request data on taxpayers from low-tax jurisdictions, even if there is no agreement on the avoidance of double taxation with a certain country,” according to the media. “A draft agreement on data exchange was approved by the government and announced Aug. 18.”

The new agreement will enable the state to receive data on ultimate beneficiaries registered in the majority of the existing offshores. However, the State Duma must still ratify the OECD Convention on Mutual Administrative Assistance in Tax Affairs, the media reported.

The new agreement also envisages a data exchange between tax authority bodies upon official request, and will apply this to information that is “in the possession of banks, other financial institutions and individuals acting as agents, including nominees and trustees.”

The requested side will have to provide requested information on taxpayers not later than three months after the request was sent, Kommersant wrote.

Photo courtesy of Arkyan.