Source: https://www.docslides.com/yoshiko-marsland/regularization-of-russian-private
Timestamp: 2020-08-12 12:10:57
Document Index: 127993308

Matched Legal Cases: ['art. 208', 'art. 213', 'Art. 86', 'Art. 198', 'Art. 120', 'art. 78', 'art. 198', 'art. 199', 'art. 199', 'art. 199', 'art. 199', 'art. 199']

Regularization of Russian Private
Added : 2016-12-14 Views :75K
Tags income tax russian criminal tax income criminal russian individuals law liability code art large years insurance taxes 000 scale paid expenses foreign
Download Presentation - The PPT/PDF document "Regularization of Russian Private" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Regularization of Russian Private - Description
C. lients’. Undeclared/Untaxed . F. unds. Undeclared Funds vs. Undistributed . R. evenues . Current Reporting Obligations on Foreign Accounts. Residency status . (for reporting purposes):. Is defined by the RF Currency Legislation;. ID: 501509 Download Presentation
Curvature Regularization for Curves and
Regularization Instructor :
Nonparametric low-rank
Conﬁdence-Aware Graph Regularization
Regularization Jia-Bin Huang Virginia Tech Spring 2019 ECE-5
Presentations text content in Regularization of Russian Private
lients’
Undeclared/Untaxed
Undeclared Funds vs. Undistributed
Current Reporting Obligations on Foreign Accounts
(for reporting purposes):
Is defined by the RF Currency Legislation;Generally includes Russian citizens, except those who are away for no less than 1 year (uninterrupted stay outsider of Russia without crossing the border)
General Rule: RF residents shall report to Russian tax authorities:
on opening (closing) bank accounts/deposits abroad;
on changing bank accounts/deposits details;
on all transactions of foreign bank accounts (or deposits);
During 1 month period
Current Rule: Dividends and Interest are Taxed Only if Actually Paid
Foreign Jurisdictions: Cyprus, Malta, BVI Switzerland, etc.
Withholding tax/ if any
9% for dividends13% for interests
Use of Capitalization Funds. Common Rules.
Tax rates for income received from transactions with securities in the RF:
13% for the RF residents
30% for non-residents
Use of Capitalization Funds. Specifics
of Securities and Financial Instruments Taxation
Actual expenses for acquisition of securities/financial instruments
Market value of the securities/financial instruments
Paid Personal income tax
Expenses reducing personal income from sale
Tax base for securities transactions is the financial result: income from sale of securities after deduction expenses for their purchase.
Tax rate: 13% for the RF residents, 30% for non-residents;
Use of Life Insurance Products: Taxation only Upon Distributions
Funds transfer as payment for insuring life/property/etc.
Proceeds from insurance policy upon certain events (death, disability, elderly age, etc.)
Income generated during the term of such insurance policy
Use of Life Insurance Products.
Income generated during the term of insurance policy is taxable at a rate of 13% as income received from foreign sources;
Insurance payments are taxable at a rate of 13% (para 2 and 3 of art. 208 of the RF Tax Code);
Tax exemption is applied to the following payments (para 2 and 3 of art. 213.1 of the RF Tax Code)
Insurance payments upon a certain age/period of the insured person or in other events if:the insurance payments are paid by the taxpayer insurance payments do not exceed the sum of his paid premiums;The difference between these amounts will be included in tax base.
Insurance payments upon events:
Injury to health; and (or)
Reimbursement of medical expenses of the insured person (exception – payments for sanatorium treatment);
Dividends: Russian Tax upon payment from Cyprus
9% Personal income tax less WHT paid in Cyprus
Interest: Russian Tax upon Payment from Cyprus
13% Personal income tax
All transactions shall be made via Authorized banks
Fine in the amount up to the sum of illegal currency transaction
Proposed CFC Legislation
Russian Ministry of Finance is working on the draft tax law which would introduce concepts of CFC (Controlled Foreign Company) for tax purposes;
Potentially, such new CFC rules may require Russian companies and individuals to report and account for
of their CFCs even if no distributions are
Taxpayers receiving dividends from sources outside of the Russian Federation are entitled to reduce the amount of tax
Key Events of De-
of Further De-
Recent/Pending Changes
to Russian Legislation on Fighting Use of Off-shores
Control on Income Sources
For individuals there is no total control for their income sources on which assets were previously acquired:
See: Federal Law No. 116-FZ dated July 20, 1998 “On state control for compliance of large expenses to income factually received by individuals (
did not come into force
See: Art. 86.1., 86.2., 86.3. of the RF Tax Code came into force from January 1, 2000, but
were cancelled from July 9, 2003;
PEPs expenses are under control from January 1, 2013
Federal Law No. 230-FZ of December 3,
“On control for compliance of
xpenses of individuals
income” (came into force from January 1, 2013);
Federal Law No. 230-FZ of December
Main purpose: fighting corruption;
Applies to transactions made from January 1, 2012;
Came info force from January 1,
Key Persons Covered by Federal Law No.
Federal Law No. 230-FZ of December 3, 2012
Land plotsOther real estateVehicleSecuritiesShares
The amount of transaction exceeds total income of PEP and his/her spouse for the last 3 years before transaction
Obligation of PEPs to inform on:
His/her expenses
Spouse’s expenses
Minor children's expenses
Strengthening of Control for Financial Operations of Individuals
FZ as of June 28, 2013 on Fighting of Illegal Financial Operations
Operative-investigation bodies
Provision of Information on bank accounts of companies, entrepreneurs, individuals
n relation to receiving information on individuals: consent of the higher tax authority is required
On the basis of court decision
Presidential decree № 1773 “On conducting tax amnesty in 1993” as of 27
th of October, 1993Federal Law № 269 -FZ "On the simplified procedure for declaring of income by individuals" of 30th of December 2006Federal Law N 330-FZ as of 21st of November, 2011 in respect of transport, land and individual property tax, debts on which originated prior to January 1, 2009 Legal entities and individuals who had declared sums of previously unpaid taxes before November 30, 1993 and transferred them into the budget were relieved from tax penalties. Within 10 months, from March 1, 2007 to January 1, 2008, individuals had the opportunity to pay taxes on income earned by them before 1 January 2006, but hidden from taxation without indication of type and source of income. The law was not effective in respect of individuals sentenced under Art. 198 of the RF Criminal Code (tax evasion). Tax debts originated prior to January 1, 2009 were written off (“forgiven”) by the tax authorities automatically. The law was not effective in respect of such debts, related to entrepreneurs activities or private practice of individuals.
An individual can not be brought to responsibility (fines) for tax offences if 3 years expired before such decision left was made, beginning from: the next day after the end of the tax period during which the offence was committed (effective for offences under Art. 120, 122 of the RF Tax Code); the date of its commission (for all other offenses);Within the framework of the field tax audit the reviewed period can not exceed 3 years from the date, when decision on the appointment of such audit was made (5 years for taxpayers participating in regional investment projects);
Tax liability ceases in the following cases:
of the taxpayer (legal entity
cases provided by the
The corrected tax return is submitted:after deadline for such submission expired, butbefore expiry of deadline for tax payment
Relief of tax liability
that the taxpayer did not know about: discovery of tax underpayment by the tax authorities the appointment of the field tax audit
The amended tax return is submitted:after deadlines for submission of tax return and for tax payment expired
1. Provided that the taxpayer paid the underpaid taxes before he became aware of: discovery of tax underpayment by the tax authorities the appointment of the tax field audit2. Provided that the tax payer paid the underpaid taxes and such underpayment was not identified in course of the field tax audit
Relief of tax liability does not exclude implication of criminal liability.
The taxpayer can
be released from criminal liability if a prescribed period of time passed since crime has been committed (p. 1 of art. 78 of the Criminal Code of the RF).
Relief of Criminal Liability
after committing a Minor offense (maximum punishment does not exceed 3 years of imprisonment);
Six years after committing an Average-gravity crime (maximum punishment does not exceed 5 years of imprisonment);
The tax offence is considered to be committed in case taxes are not paid in the time term established by the tax legislation
*Large scale:
more than RUB 600 000 (USD 17,000) within 3 consecutive years, provided such tax underpayment exceeds 10% of due taxes payable, OR more than RUB 1,8 mln (USD 50,000);
Tax and duty evasion committed
on a large scale*(art. 198 of the Criminal Code of the RF)
Failure to fulfill the tax agent obligations on a large scale**(p. 1 of art. 199.1 of the Criminal Code of the RF)
Tax and duty evasion committed by organization on a large scale ** (p. 1 of art. 199 of the Criminal Code of the RF)
who committed minor tax offence for the first time may be released from criminal liability in case of payment of all underpaid taxes and fines.
**Large scale:
more than RUB 2 000 000 (USD 56,000) within 3 consecutive years, provided such tax underpayment exceeds 10% of due taxes payable,
OR more than RUB 6
RUB (USD 166,000);
*Especially Large scale:
more than RUB 10 mln. (USD 277,000) within 3 consecutive years, provided such tax underpayment exceeds 20% of due taxes payable, OR more than RUB 30 mln (USD 833,000);
Relief of Criminal Liability (Continuation)
Average-gravity crimes
Tax and duty evasion committed:
by a group of persons with prior agreement
on especially large scale*(p. 2 of art. 199 of the Criminal Code of the RF)
Concealment of funds or property of the legal entity or entrepreneur, at the expense of which taxes and duties are to be paid, on a large scale**(art. 199.2 of the Criminal Code of the RF)
Failure to fulfill the tax agent obligations on especially large scale*(p. 2 of art. 199.1 of the Criminal Code of the RF)
More than RUB 1 500 000 (USD 42,000);
Limitation Period for Administrative Liabilityfor Tax Offences
The taxpayer can not be brought to administrative liability for a tax offence after expiration of 1 year term from the date when the tax offence was committed (for long-lasting offences - from the date of discovery of the tax offence).
Administrative offences related to taxation and duties
of time term for registration with the tax
of the time term for submission of a tax
data necessary for tax control
Gross violation of accounting and submission of financial statements
You For Attention!