Category: Russia

G20 to press for ‘rapid timeline’ for exchange of tax information

NEW DELHI: G-20, a group of developed and developing nations, is likely to press for adoption of “rapid timelines” by different countries for automatic sharing of information with a view to curb tax evasion. The issue of automatic sharing of tax information would figure prominently during the meeting of G-20… – Continue reading

Cayman included on FCA high-risk list

The Cayman Islands, an important international business competitor for Bermuda, is expressing “consternation” that they have been included on a new list of high risk jurisdictions for financial crime. There are a total of 95 countries listed including Brazil, Afghanistan, Cuba, Russia, China, Iraq, the Republic of Congo and Jamaica…. – Continue reading

10 Facts About FATCA, America’s Manifest Destiny Law Changing Banking Worldwide

Never heard of FATCA? You will. FATCA—the Foreign Account Tax Compliance Act—is America’s global tax law. It was quietly enacted in 2010, and after a four-year ramp up, it’s finally in effect. What is most amazing is not its impact on Americans—although that is considerable—but its impact on the world…. – Continue reading

Russian FM Provides Anti-Offshore Law Update

Russia’s Finance Minister, Anton Siluanov, has told President Vladimir Putin that a new bill to deter Russian tax residents from hiding income offshore is expected to raise about RUB30bn (USD844m) from overseas accounts in Cyprus and the Netherlands. During a Government meeting on July 30, 2014, Siluanov explained that entrepreneurs… – Continue reading

Russian government to submit offshore taxation bill to parliament

Therefore, Russia “could receive about 30 billion rubles [about $900 million] in additional budget revenues [annually], which are extremely necessary,” Finance Minister Anton Siluanov noted NOVO-OGARYOVO, July 30. /ITAR-TASS/. Russia’s new offshore taxation rules will yield about $1 billion in tax revenues for state coffers annually, Finance Minister Anton Siluanov… – Continue reading

Offshore participants in government procurements ought to reveal their owners

YEREVAN, July 17. /ARKA/. Russia’s government has approved the package of legislative changes which make offshore companies’ access to the state’s money more complicated. They no longer will be provided by guarantees and they will be obliged to reveal beneficial owners in government procurement auctions. The demands turned out to… – Continue reading

Putin signs law on providing information by Russian banks under FATCA statute

MOSCOW, June 30 (RAPSI) – Russian President Vladimir Putin has signed a law to allow Russian financial institutions to provide information about US taxpayers and to oblige foreign financial institutions to report Russian taxpayers to Russia’s Federal Tax Service. The document has been posted on the government website of legal information…. – Continue reading

Russia Approves Direct Information Exchange on US Taxpayers

MOSCOW, June 25 (RIA Novosti) – Russia’s upper house of parliament, the Federation Council, on Wednesday authorized the direct exchange of information between Russian banks and US tax authorities on US taxpayers. The US Foreign Account Tax Compliance Act (FATCA) requires foreign banks to supply the Internal Revenue Service (IRS)… – Continue reading

Russian Banks to Help U.S. Tax Service After New FATCA Law Passed

The State Duma on Friday passed legislation allowing Russian banks to pass information on their U.S. clients to the U.S. tax service, as demanded by FATCA, a law that drags banks around the world into the U.S. fight against tax evasion. But lawmakers were not keen to bend over backwards for the U.S. Under the legislation, authorities will be able to veto the transfer… – Continue reading

Russia ready to collect information on its depositors abroad

The Russian authorities are ready to provide the U.S. internal revenue service with information on American depositors, but have drafted a bill for similar measures in the United States. All foreign banks that work with Russian clients will be obligated to disclose information about such clients to Moscow. Primarily, the… – Continue reading

FATCA Causes First Russian Bank To Cut US Clients

With Russia unlikely to be able to conclude a Foreign Account Tax Compliance Act (FATCA) intergovernmental agreement (IGA) with the United States in the foreseeable future, and subject to the country’s current law on tax information exchange, VTB has become the first Russian bank to disclose that it is reducing… – Continue reading

Russia’s No. 2 Bank VTB to Stop Servicing Russia-Based U.S. Clients

VTB, Russian’s second-largest banking group, will cease service to Russia-based U.S. clients to avoid falling foul of FATCA, a U.S. tax avoidance law that comes into force on July 1. Even at this late stage, Russian law and FATCA are incompatible — Russian banks will be able to comply with U.S. law or Russian law, but not both, the head of the… – Continue reading

Russia’s VTB to stop service in US to comply with FATCA

The FATCA obliges banks to send information about US clients and their transactions to the Internal Revenue Service MOSCOW, Jun 5./ITAR-TASS/. The banks of Russia’s VTB Group will gradually cease servicing its 2,000 US clients to comply with the requirements of the Foreign Account Tax Compliance Act (FATCA), daily Izvestia… – Continue reading

B2B: Russian International Business Faces Its Biggest Shake Up in Decades

Russian business is certainly facing a challenging time. The Russian Government has sights set on the offshore business of Russian entities and individuals, and when they get their way it may have wide-reaching implications not only for Russian business, but for anyone doing business with Russian partners across the globe…. – Continue reading

Russia Mulls ‘Limitations’ On Information Exchange With U.S. Under FATCA

The Russian government may place “limitations” on the amount of information that Russian banks can render to U.S. tax authorities under FATCA, a U.S. federal law intended to crack down on tax avoidance by U.S. citizens, Deputy Finance Minister Alexei Moiseyev said Thursday. Moiseyev told journalists in St. Petersburg that Russia will not become “tax agents for the Americans, that… – Continue reading

Russian banks will be able to provide information under FATCA statute

MOSCOW, May 14 (RAPSI) – The Russian government has approved a bill to allow Russian financial institutions to provide information about US taxpayers and to oblige foreign financial institutions to report Russian taxpayers to Russia’s Federal Tax Service, reads a statement on the government’s website. The bill has been submitted to… – Continue reading

U.S. plans to unleash IRS on Russian banks

Washington • As the United States attempts to punish Russia for its actions in Ukraine, the Treasury Department is deploying an economic weapon that could prove more costly than sanctions: the Internal Revenue Service. This summer, the U.S. plans to start using a new law that will make it more… – Continue reading

UPDATE 1-Russia’s Polyus Gold considers call to come home

MOSCOW, April 11 (Reuters) – Polyus Gold, Russia’s biggest gold miner, is considering state proposals to encourage the rebasing of Russian firms currently owned by offshore entities and intends to explore these issues with the government, the company said on Friday. The comments of the Jersey-registered company, whose share listing is… – Continue reading

What qualifies as direct investment under Cyprus-Russia double tax agreement?

Introduction Article 10 of the Russia-Cyprus double tax agreement grants taxing rights over dividends to the state of residence of the company paying the dividends (in addition to the state of residence of the recipient). The tax that may be imposed in the state in which the dividends originate is… – Continue reading

Russia Accelerates Legislation to Avoid Fines as FATCA Talks Stall

The Finance Ministry is drawing up legislation allowing Russian banks to give information about their clients to foreign tax authorities, after U.S. stonewalling halted bilateral negotiations on a  financial information sharing agreement. At the same time, the ministry intends to oblige foreign banks to report similar information to the Russian tax service, Vedomosti reported Wednesday, citing sources in the ministry…. – Continue reading

New Russian Forex Bill: Offshore Regulation To Be Banned

The schedule of the Russian parliament has been updated yet again and it appears that forex dealing regulation is coming back to the fray. According to recent reports by Russian media there might be some key amendments aimed to limit the participation of brokers residing in offshore financial centres (OFCs)…. – Continue reading

A changing world

Recent discussions about the movement of capital and offshore accounts have to be a major cause for concern. During a Central Bank seminar recently, Minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss, sounded the warning that compliance with the recently passed Foreign Account Tax Compliance Act… – Continue reading

Why ‘Londongrad’ Weighs On Britain’s Russia Policy

LONDON — They are the most expensive and luxurious flats in the whole of London. Their ultramodern bay windows offer an unobstructed view onto Hyde Park. An underground corridor connects them to the Mandarin Oriental, the palace where Michelin-starred chef Heston Blumenthal has one of his prized restaurants. In total, the… – Continue reading

Luxembourg Ordered to Give EU Tax-Deal Detail Amid Aid Probe (1)

European Union competition watchdogs ordered Luxembourg to hand over details of tax breaks for businesses after they said the Grand Duchy was hindering a state-aid probe spanning several EU nations. Luxembourg refused to deliver details concerning the 100 largest companies benefiting from a special program for companies whose profits stem… – Continue reading

How Suntech, Chinese Solar Giant, Was Snared In An Italian Fraud Scandal

As 2008 began, the future looked brilliant for green energy giant Suntech Power and its high-flying founder, Shi Zhengrong. Suntech was one of the world’s largest makers of solar panels, the first non-state-owned Chinese  company traded on the New York Stock Exchange. And Shi, born to a farm family so… – Continue reading

OECD urges quick action on multinational tax dodges

OECD tax director Pascal Saint-Amans has played down concerns that the United States might resist plans to make multinational companies such as Apple and Starbucks pay more tax, arguing that governments must move quickly to close multibillion-dollar loopholes or risk ordinary citizens ­losing faith in their taxation systems. Mr Saint-Amans… – Continue reading

Documents reveal Kurchenko’s alleged tax evasion schemes

The young Ukrainian ex-billionaire Serhiy Kurchenko, now widely suspected of being a front man for overthrown President Viktor Yanukovych’s family, clearly liked offshore destinations. His companies registered in offshore zones are now accused of trading in oil products using a tax evasion scheme that cost Ukraine’s government an estimated $1… – Continue reading

Several offshore zones suggest exchanging tax information with Russia

Russia’s Finance Ministry has received suggestions from several offshore zones on organization of negotiations on exchange of tax information, Russia’s Deputy Finance Minister Sergei Shatalov told a Week of Russian Business on Monday. “Lately, the finance ministry has received suggestions from the British Virgin Islands, Bermuda Islands, the Isle of… – Continue reading

Ukraine Crisis: Liechtenstein Joins Switzerland in Freezing ex-Ukraine Government Assets

Liechtenstein, one of the world’s most uber secretive tax havens, has joined Switzerland in freezing the assets of ousted Ukrainian president Viktor Yanukovich’s administration. An unnamed senior Liechtenstein government source told Reuters that Liechtenstein was freezing the assets of former party officials in the Ukrainian administration after other jurisdictions launched… – Continue reading

Luxembourg: on-shore financial center with a commitment to privacy

Luxembourg has been widely hailed as an international investment center for years. The Association of the Luxembourg Fund Industry (ALFI) provides a number of reasons underlying the country’s designation as a top fund-industry choice. Its legal and regulatory framework for investment funds is recognized for its excellence by the global… – Continue reading

Russia targets offshore investors

The Russian Finance Ministry will offer companies based offshore but with operations in Russia a choice: either disclose their ultimate beneficiaries and maintain their zero tax rate, or pay taxes at the higher Russian rate. Under Russia’s current corporate tax structure, offshore beneficiaries of Russian companies are treated as de-facto… – Continue reading

G20 to tackle transfer pricing with new tax exchange scheme

The days of multinational companies being able to use the Double Irish Dutch Sandwich to avoid taxation may soon be coming to an end, with the G20 group of nations looking to create a reporting standard to allow for automatic exchange of tax information. In the official communique coming at the end… – Continue reading

Margelov: agreement on avoiding double taxation is in Russia’s interests too

Russian Federation Council foreign committee chairman Mihhail Margelov said at his meeting with Estonian Riigikogu speaker Ene Ergma on Thursday that the agreement on avoiding double taxation between the two states is in Russia interests too, LETA/Public Broadcasting reports. Ergma expressed concerns over the halting of the ratification process of… – Continue reading