Don’t miss your chance to legalise your assets abroad by 28.02.2019!
The second stage of the capital amnesty under the Federal Law No. 140-FZ starts from the 1st March 2018. Under the amnesty, assets (real estate, transport vehicles, securities), controlled foreign companies and/or bank accounts outside the Russian Federation may be voluntarily declared by 28th February 2019. In addition, it is not required that your property and other assets located abroad are returned to Russia.
Which exemptions are provided under the capital amnesty law?
Exemption from criminal liability for tax evasion on a large scale and especially large scale and from violation of the currency law (Part 3 Article 76.1 of the Criminal Code of the Russian Federation).
Exemption from administrative liability for entrepreneurial activity carried out without the relevant registration and/or licence/permit or with a gross violation of licence/permit requirements (Article 14.1 of the Administrative Offence Code of the Russian Federation).
Exemption from liability for tax violations, including fines at the rate from 20% to 40% of the unpaid tax amount.
PLEASE NOTE! Exemption from liability is possible provided that the special declaration is filed before the initiation of the relevant criminal proceedings or administrative or tax violation proceedings.
Which guarantees does the capital amnesty law provide?
Information communicated in the special declaration may not constitute the basis for the initiation of criminal, administrative or tax proceedings.
Information contained in the special declaration are understood as the tax secret of the Russian Federation. The Federal Tax Service ensure confidentiality of such information. Such information may not be provided to other government bodies and organisations.
Such guarantees apply only to assets specified in the special declaration.
PLEASE NOTE! Guarantees provided by the capital amnesty law apply to events that took place before 1st January 2018.
Is it worth using the tax amnesty?
Certainly, private assets are essential for each owner so a lot of questions and concerns occur in this regard.
Is it worth rushing? If after the first amnesty, the government announced the second one so maybe there will be the third one etc.? There are no guarantees regarding this matter, and the current amnesty will likely turn to be the last one.
Is it really necessary to declare property that has been successfully hidden? It is much easier to run the business and hide profits… It’s impossible to fly under the radar all the time! Owner’s risks of bearing the full liability under the laws of the Russian Federation increases with every passing day. Under arrangements between OECD Member countries, automatic exchange of information has been carried out since October 2018. Tax authorities of the Russian Federation receive all necessary data on Russian residents (over 80 countries, and the list will be expanded).
How can we help you?
We can assess the practicability of membership in the amnesty and carry out a detailed analysis of risks in each particular situation.
We can develop the most advantageous strategy of using the capital amnesty and carry out property legalization on the most favourable terms.
We can prepare the special declaration.
We can prepare a notification of the interest in a foreign company, notification of CFC.
We can conduct audit of CFC (Auditor’s Opinion under ISA).
We can prepare financial statements under IFRS (based on bank statements and source documents).
We can prepare notification of opening (closing) accounts at banks located outside the Russian Federation.
We can submit the declaration and notifications on the basis of a notarized power of attorney.
Based on our experience and practice, we understand that each case is unique, and sometimes it is less risky to refuse to file the declaration than provide tax authorities with information on non-declared property.
You can assess risks related to declaration of such information by yourself or contact ACG Yans – Audit.
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