Putin recommends to postpone offshore property disclosure

Putin recommends to postpone offshore property disclosure

1 min.

At public speech on March 19, 2015, president Putin declares necessity to coordinate the pace of enactment of anti-offshore legislation with anticipated development of offshore capital amnesty law.

Under anti-offshore law came in force from 2015, Russian tax residents shall disclose till April 1 more than 10% stakes in foreign companies to tax authorities. Taxation of CFC income of Russian residents shall start in 2017. On the contrary, last December Putin has proposed a total amnesty for all funds returning to Russia. This was done just one month after signing of an anti-offshore law curbing capital flight. The evident contradiction between these two concepts is not resolved yet. The parameters of would-be capital amnesty are also not formalised. At Putin’s December speech, he said – “do it once, and do it for free”. There is a severe clash with FATF requirements, which do not provide for gratuitous amnesty.

Based on the information from Finance Ministry, it is expected that the deadline for disclosure of foreign corporate properties will be postponed till September 1, 2015. This offers a clue to the pace of development of offshore capital amnesty law – it should be ready and enacted till this date.

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