Russia is planning to join an international treaty developed by the OECD and Council of Europe in a bid to allow Russia to share tax information with other member countries.
The treaty will allow the state to bring as much as $5 billion to $6 billion in extra tax revenue from offshore assets, according to Russia Beyond The Headlines.
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The Russian Finance and Interior Ministries have submitted a bill to the government regarding the ratification of the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
The ratification process will allow Russian fiscal agencies to broaden information exchange with their foreign counterparts, participate in international tax inspections, and levy outstanding payments from businesses with assets abroad.
Russia is also planning to crack down on offshores, start to levy taxes on offshore entities controlled from Russia and ban the practice of awarding government contracts to such companies.
Russian Deputy Finance Minister Sergey Shuvalov said: "Offshores will provide us with the information we need, including that on the operations, structures, and accounts under their jurisdiction."
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By GlobalDataThe convention will also allow cross-border debt collection, wherein a business has outstanding tax payments in one country and holds its assets in another; fiscal services will be able to impound those assets.
