An automatic exchange of financial information
Last summer, the Russian media reported, that the Federal Tax Service of Russia (FTS) joined to a single system of automatic exchange of financial information, the OECD and the beginning of the test the exchange of country reports from foreign competent authorities. This event, which can seriously affect many processes inside Russia, and abroad.
In the twentieth century the world finally formed Institute of banking secrecy, And it served as a role model for the Swiss model. AT 1988 The OECD and the Council of Europe adopted the Convention on Mutual Administrative Assistance in Tax Affairs. However, the United States began to question the desirability of maintaining banking secrecy, Recalling, that it contributes to the widening of the informal sector of the world economy. AT 2005 g. not without effort in Washington were amended article 26 OECD Model Tax Convention: It prohibits the refusal to provide information, citing bank secrecy.
AT 2008 Washington was moved from words to actions. The FBI has initiated a lawsuit against the largest Swiss bank UBS AG. It revealed, more 50 thousands of US citizens hold a Swiss bank money, not paying taxes. Switzerland under pressure from Washington contributed to the black list OECD, and the following year, Washington managed dodavit all the major banks in Switzerland.
AT 2010 g. Protocol to the Convention was adopted 1988 of the year, which made it open for countries, non-OECD. A particularly important event in establishing an information exchange in tax matters in the signing 29 October 2014 of the agreement of the competent authorities of the automatic exchange of information in accordance with a common reporting standard (CRS MCAA). The agreement was signed then put 51 jurisdiction (now the number of signatories of the agreement reached 100). CRS MCAA is in the nature of a framework agreement, which should be complemented by bilateral agreements. Financial Information has two formats - financial accounts (separate legal entities and individuals) and country reports (surveillance and analytical information).
Experimental exchanges of information under the agreement CRS MCAA began shortly after the signing of the agreement. A significant milestone was 2017 year, when exchanges attended 49 jurisdictions. And the first year of a full exchange of financial information between the parties to the agreement CRS MCAA, OECD recognition, I became 2018 year. In exchange, was involved 86 nations.
Russia joined the agreement CRS MCAA 12 May 2016 g. After a year and a half (27 November 2017 of the year) The federal law was passed, regulating the participation of Russia in the implementation of this agreement. As determined by the competent authority FNS. Russia marked the start of exchange of financial information - from the middle of 2018 of the year.
The OECD in its report Automatic Exchange of Information Implementation Report 2018 reported, that in the past year has been committed for a total of 4500 Transmission of information. It was, true, disruptions. for example, in some programs did not have all the relevant information standards. Not all countries have handed Country reports (limited financial accounts). by the way, Russia got the OECD report in the "gray list" (a list of the four countries, which at the time of publication of the report - 22.11.2018 - "for technical reasons" delayed transmission of information in full). Another "gray list" of the OECD - countries, which do not transmit the information for legal reasons (regulations are not adopted, regulating the country's participation in the agreement CRS MCAA). Among them - Israel, Qatar, Turkey.
Overall, however, the OECD as the main organizer of the exchanges satisfied. "This is a milestone, real success, beginning of a new era of tax transparency ", - authors of the report, thinking, what in 2019 year the number of participants will be even wider, and the number of exchanges over.
In early September 2018 FNS reported year, that has carried out the automatic exchange of country reports from 26 States and territories. The service in the framework of this exchange came about almost 600 the largest international groups of companies, present in Russia (kind of country report). This refers to information about income, arrived, the average number of employees, as well as the amounts of taxes, calculated and paid to the budget system of Russia and foreign states. Besides, at the beginning of autumn, FNS data for, more 700 financial market organizations submitted reports to the tax office on the financial accounts of foreign tax residents.
While in Russia 2018 year announced the full participation in the exchanges, exchange of information on financial accounts were activated with Russia 83 jurisdiction, two jurisdictions (Latvia and Monaco) exchange did not happen. Sharing country report was made to the 54 jurisdiction. By the end of last year, all exchanges both inbound, and emerging information Russia completed. FTS in March of this year, reported sparingly information, obtained from abroad. Fixed assets of Russians 58 jurisdictions, including the British Virgin and Cayman Islands, Mauritius, other offshore and low-tax jurisdictions (obtained, what in 25 jurisdictions, FNS has received information from, Russian trace is found). Other details and comments on information, received from foreign colleagues, FTS does not publish, Recalling, it is a tax secret.
Yet more than half of the world's countries and jurisdictions remain outside the agreement CRS MCAA. According to him the members of the agreement up black lists and take action against those banks, companies and individuals, that are suspected or convicted of financial links with the persons involved in blacklisting. The blacklist, first developed in the Federal Tax Service 2015 year, It was 119 countries and 18 areas. On 2018 FTS year was approved and black lists, including 107 States and 18 areas. Among them, eg, Andorra, Brazil, Colombia, Nigeria, OAE, Rwanda, Tunisia, Ethiopia, Jamaica, Puerto-Rico, Virgin Islands (USA), Gibraltar, Taiwan.
Now the Russian is preparing for a new round of information exchange. To 1 May, the bank should convey reports for 2018 year. Penalty for failure to provide information or violation of terms ranging from 300 thousand. to 500 thousand. rub., but before 2020 year moratorium on its use. Prepared and approved a new blacklist, which has only 100 States and all the same 18 areas.
Slow, but surely shagreen offshore contracts. It is very important for Russia, where huge assets withdrawn in offshore jurisdictions. According to the Bureau of Economic Analysis estimates (USA), made in 2017 year, they are about 1 trillion. Doll. There are also higher scores.
Even before the commencement of the functioning of the automatic exchange of financial information, the Russian owners of offshore companies and offshore accounts began to feel uncomfortable due to regular leaks. One of the largest and most scandalous occurred 2016 year, when information about the many thousands of beneficiaries of such offshore jurisdictions were promulgated, how Panama. The lists of persons involved in the Panama scandal, were citizens of the Russian Federation, and not only businessmen, but also high-ranking officials. The situation for those Russian citizens, who are accustomed to living under the umbrella of offshore, further complicated Antirussian West sanctions. In particular, Washington is now starting to spin a campaign to "Search for President Putin's foreign assets". The problem is formulated broadly - to identify and freeze bank accounts and other assets of persons, who "can enjoy the patronage of the President of Russia and / or act in its interests". With such a broad interpretation under the Damocles sword of Washington's sanctions may be any citizen of the Russian Federation, having assets abroad.
To understand the situation, developed around Russia, It should take into account an important point: US does not participate in the Framework Agreement on the exchange of financial information. Although Washington is strongly intensify the fight against offshore companies and banking secrecy. During President B. Obama, at 2010 the US adopted a law on tax reporting in foreign accounts (FATCA). It is the law extraterritorial effect, It requires foreign financial institutions, that they reported the IRS detailed information about US citizens, are clients of these organizations. When in 2014 It was going to sign an agreement CRS MCAA, The US said, that they are to join the agreement will not. breakwater, FATCA has allowed America to build their own effective system of exchange of financial information and participate in the Washington agreement CRS MCAA is "excessive".
So what the system has built America with the help of FATCA law? A number of countries (first European) He hastened to conclude with the United States interstate agreements on exchange of tax-related information in accordance with the standards FATCA. There, cooperation is mutually beneficial, because the other party receives from the United States information on its citizens. However, in most of the countries of international agreements with the United States there is no; banks and other financial institutions of such countries are the IRS FATCA information on standards directly. A country, do not have with the United States interstate agreements, They can not count on reciprocity, t. it is. receive information about their citizens in the United States accounts. It turns out one-way street. Russia has been trying to conclude an intergovernmental agreement with the United States, but after, Washington began to impose sanctions against Moscow (from 2014 of the year), talks on Washington's initiative were discontinued; banks and other financial institutions of the Russian Federation regularly deliver information, correct IRS. Built one-way street.
And Washington and should be one-way traffic - in this case, it is gradually transformed into the world's only offshore. US does not intend to disclose the information to other countries about customers of US banks and other financial institutions (insurance companies, trusts and hedge funds, etc.. P.). Destroying ten years ago, banking secrecy in Switzerland, Washington is seeking to make America the "New Switzerland". Today capital and hide out of sight of the national financial services is much easier not in Zurich or in Cyprus, and banks Wyoming, Nevada and several other US states, with all the signs of "tax havens" and "island paradise".
Those Russian citizens, who are accustomed to living in "an offshore paradise", today getting nervous, darting from one "island paradise" on the other. In the context of the expansion of the system of automatic exchange of financial information, the number of offshore companies is rapidly declining. The only place for lovers' paradise "will soon become the jurisdiction of the USA under the name.
Bank of Russia's statistics record, that capital flight from Russia is not reduced, and growing. In January-February 2019 , net capital outflow from the country amounted to 18,6 billion. Doll. But in December 2018 the Bank of Russia predicted, that the entire 2019 year net capital outflow will not exceed 20 billion. Doll. Forecast for the year is almost entirely "made" for two months. And in the previous year for the first two months of net outflows amounted to 8,7 billion. Doll. It turns out, that less 100 billion. Doll. net annual outflow of capital can not be.
Where capital flees from Russia? The Bank of Russia Geographic structure of export of capital does not give, but there are many indirect signs, that all most of it rushes directly into the mouth of a new informal offshore company called USA. Why "in the mouth"? because, that US law there are many reasons for the seizure and confiscation of assets of Russian origin. As the saying goes, would be assets, and article of US law for confiscation there will.
