On 12 May 2016 at the OECD Forum in Beijing, Russia signed the
Multilateral Competent Authority Agreement on the Automatic
Exchange of Financial Account Information (AEIO), joining other
Common Reporting Standards (CRS) signatories.
Israel also joined Russia in Beijing, in becoming CRS
signatories of the AEIO however according to an OECD statement, the
two countries failed to sign a further agreement committing them to
exchange of country-by-country reporting in line with other CRS
In a recent Bloomberg BNA report, VP of NERA Economic
Consulting, Vladimir Starkov noted, that Russia most 'likely
held-off' agreeing to country-by-country reporting as it is
still in its infancy in developing its own country-by-country
reporting legislation and is waiting until its own legislation has
been approved. A draft of the reporting legislation was drawn
in April and is awaiting feedback and comments by 22 June 2016. If
passed multinational companies whose consolidated revenue in the
financial year prior to the reporting year was $768 million would
require country-by-country reporting and if adopted, would come
into force on 1 January 2017, with a period of transition being
Russia has become the 81st jurisdiction to join the CRS
agreement, whereby Russian tax authorities will automatically
receive information on foreign accounts of Russian tax residents,
by foreign tax authorities. This should help better enforce
Russia's mandatory law to disclose holding of assets in foreign
jurisdictions as endorsed by Head of Tax at Linklaters CIS Moscow,
Viktor Machekhin, who told Bloomberg BNA on 17 May,
further reporting that joining the CRS allows tax authorities to
receive information that other nations would possess, saying that
"some of the companies that have a presence abroad will still
have to disclose their information if they are active in the
countries where such disclosure is provided", "Therefore,
there are certain benefits in having one's own national
rules" that require companies to disclose tax and financial
The first exchange of information reports for Russia, are
expected to take place in 2018 for information pertaining to 2017,
and will be done in electronic format via the OECD platform.
The aim of the CRS as part of a global effort coordinated by the
OECD, is to create an automatic, international information exchange
network and disclosure of income, to maximize efficiency, reduce
costs and act as a measure to counter tax evasion.
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