Business · Economy · 1 hr ago
Russia proposes monitoring bank transfers for undeclared income
Russia’s Finance Ministry has proposed new checks on personal bank transfers to look for income that may not have been declared for tax.
Under the plan, the Central Bank would flag accounts showing regular income from other people and send information to the Federal Tax Service.
Tax officials could then ask banks for statements on those accounts.
The proposal is being added to a bill in the budget package, and a State Duma committee plans to consider it on November 15.
Current rules generally allow tax inspectors to request statements for individuals who are not registered as sole proprietors only in cases involving tax debt collection or an authorized tax audit.
The ministry says some transfers treated as gifts may actually be payments for services or apartment rentals, which can go untaxed.
The plan would give tax authorities a new route to examine accounts, but the criteria for flagging transfers have not yet been set.
Russia’s Finance Ministry has proposed that the Central Bank share information with the Federal Tax Service about individuals whose account activity suggests regular income from other people.
The tax service could use that information to request bank statements from those individuals’ banks.
The proposal would add a new basis for requesting statements beyond tax-debt collection decisions and authorized tax audits.
The criteria for identifying regular income and the format and frequency of reports would be set separately.
The ministry says the change is needed because some transfers treated as gifts may actually be payments for services or apartment rentals.
- Who
- Russia’s Finance Ministry proposed the amendment, involving the Central Bank and the Federal Tax Service.
- What
- The proposal would have the Central Bank flag account activity suggesting regular income from other individuals and share information with the tax service.
- When
- The ministry proposed the amendment ahead of a bill’s second reading. A State Duma committee planned to consider it on November 15.
- Where
- Russia.
- Why
- The ministry says some transfers treated as gifts may actually be payments for services or apartment rentals and go untaxed.
This story does not have two clearly opposing sides.
Vedomosti reported that the Finance Ministry was drafting amendments to tighten scrutiny of transfers between individuals.
The Finance Ministry proposed that the Central Bank share information with the Federal Tax Service about account activity suggesting regular income from other individuals.
The relevant State Duma committee planned to consider the amendment.
- Proposal
- Central Bank would share information with the Federal Tax Service
- Tax service access
- Could request bank statements using Central Bank information as a new basis
- Committee consideration
- November 15
- Earlier report
- Vedomosti reported in March that the Finance Ministry was drafting amendments
- Examples of potentially untaxed payments
- Services and apartment rentals
What people are saying
gifts