Friday, November 21, 2014

RT — New Tax Law to Reverse Capital Outflows, Bring Billions to Russian Treasury

The new law requiring that all foreign dealings now be reported, aims to prevent major capital outflow (estimated at $200 billion in 2014)….

Russia’s upper house of parliament has approved an “anti-offshore” law requiring individual and corporate taxpayers to report foreign profits. The Russian government aims to prevent capital outflow via “offshores,” estimated at $200 billion in 2014.
The law requires Russian tax authorities to be notified of all foreign dealings. The government believes it will return $3.1-4.2 billion in tax revenue to the Russian state budget.…
According to some experts, over $2 trillion has flowed offshore out of Russian jurisdiction in recent years, TASS reports. Even the most moderate estimates put the figure at between $800 million and $1 trillion.…
Legislators believe that 20-30 percent of capital outflow can return to the country via taxes.

Offshore companies are used to blanket the activities of companies that wish to keep ownership details anonymous or as an outlet for criminal activities such as tax evasion and corruption.…
Russia’s largest car-maker, AvtoVaz announced in May that it will drop its offshore status and re-register in Russia. Many of Russia’s biggest state companies- Rusal, Evraz, Russian Railways, and Metalloinvest generate a lion’s share of their profits outside of Russia.
RT

4 comments:

Dan Lynch said...

And then there is this: http://www.newrepublic.com/article/120326/kremlin-allows-russians-carry-guns

Meanwhile in the US .....

PeterP said...

They are desperate/naive. The money flows out precisely to avoid taxation, clamping with stronger taxes will deepen the exodus. Russia is a banana republic even Russians don't want to keep money in. Second, the law hopes to bring 3bn? They are losing 20 bn a month in reserves, so they need a new law of this kind every 5 days.

Matt Franko said...

Does anybody else see the irony in how all the reporting here at "Russian Times" (alleged) about "Russian Capital" (again alleged) is quantified in USDs?

Are any of these people EVER going to get their OWN "money"????

Why dont they just report this story in Rubles?

Neil Wilson said...

The problem is maintaining a snake.

That just pops up a target for the FX market to have a go at.

It should be constitutionally banned for a central bank to buy its own currency in the open market. The only operations a central bank should undertake is a 'repatriation' with the opposing central bank - e.g. a ruble/USD swap back to eliminate elements off both balance sheets.