Russia acceded to CRS Multilateral Competent Authority Agreement (CRS MCAA)

On May 12, 2016 the representatives of the Federal Tax Service on behalf of the Russian Federation signed the Multilateral Competent Authority Agreement. This important event took place in Beijing at the Forum of the Organization for Economic Cooperation and Development (OECD) on the Tax Administration.

Common Reporting Standard (CRS) was endorsed in early 2014 within the framework of G20 and approved by the OECD Council in July 2014. The CRS Multilateral Competent Authority Agreement (CRS MCAA) was signed by 51 jurisdictions in October 2014. Already 80 countries have joined the Agreement, among them are such known offshores as Belize, BVI, Bermuda and the Seychelles, the islands of Jersey and Guernsey, Isle of Man, as well as Gibraltar, Cyprus, Switzerland and the Netherlands.

The exchange of information will be carried out in electronic form and will start for Russia since 2018 in relation to the data for 2017. 

The basis of information in the framework of exchange should be maid of taxpayers' incomes earned from funds on bank accounts, data on remaining balance on accounts, as well as on payments from these accounts. The Russian tax authorities will be able to obtain such information on Russian taxpayers from overseas banks, depositories, brokers, investment funds, as well as from some insurance companies. 

Currently, such exchange of information is carried out only at the specific request. The Federal Tax Service, according to its own data, exchanged information with the relevant authorities of 58 foreign countries in 2015. The volume of this exchange amounted to more than 10 million units.  

According to the data of the Information and analytical system Globas-i®, there are more than 15 700 active Russian legal entities with companies – co-owners in Cyprus, in British Virgin Islands -  more than 5 200 companies, in the Seychelles – more than 4 100 companies, as well as in Belize - more than 2 100, and in Switzerland – more than 1 500. For comparison it can be given the same data on Russian legal entities with co-owners in the countries - Europe's largest foreign business partners of Russia: in Germany - more than 3 500, in Finland – more than 1 000, in France – more than 950. The amount of companies with co-owners in China is more than 1 100. 

In view of the termination of the so-called capital amnesty in June 2016 the Federal Tax Service highly recommends Russian businessmen even now to use almost the last opportunity to declare voluntarily the foreign assets and accounts in foreign banks.