Tax authorities will have access to banking information

Russia’s Federal Taxation Service will have access to the entire information available on accounts entities and individuals have at financial institutions. A respective legal provision will be effective since next spring, Kommersant daily reports.

Mikhail Mishustin, the Head of Russia’s Federal Taxation Service. Mikhail Klimentiev | RIAN

The new order of the Federal Taxation Service which has been registered by the Ministry of Justice is aimed to simplify tax enforcement. Tax collectors will be able to swiftly find bank deposits and impose a levy. More so, if an individual claiming low income is found to hold sizeable deposits, tax authorities may demand information on the sources of the money.

The new procedures will allow obtaining explicit information on funds companies and individuals have in banks. Businesses may benefit from the new procedures though as the Federal Taxation Service, when filing a request with a bank, will have to specify the data it is soliciting in respect of an individual, a private entrepreneur or a company.

Previously, authorities often mingled personal and business accounts and, for example, prohibited extension of loans to individuals with frozen business accounts, or collected corporate debts from personal accounts. That will now be impossible or problematic, experts believe.

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