The Russian government may place "limitations" on the amount of information that Russian banks can render to U.S. tax authorities under FATCA, a U.S. federal law intended to crack down on tax avoidance by U.S. citizens, Deputy Finance Minister Alexei Moiseyev said Thursday.
Moiseyev told journalists in St. Petersburg that Russia will not become "tax agents for the Americans, that will not happen under any circumstances," Interfax reported.
"We cannot spell out in the law the cases when you can and cannot [transfer information]. But there must be some limits, in the first place on the quantity of information," Moiseyev said, without further specifying what those limitations might be.
The Foreign Account Tax Compliance Act, or FATCA, threatens all banks worldwide with penalties if they fail to share information on American account holders with the U.S. Internal Revenues Service, or IRS. It also requires the banks to withhold 30 percent on certain payments if an account holder is deemed to be a tax avoider.
The U.S. in April quit negotiations with Russia over FATCA as part of a freeze on political cooperation following Russia's annexation of Crimea in March, leaving the Russian government scrambling to adapt its laws to the legislation by July 1, when FATCA comes into force. Current Russian law does not allow Russian banks to comply with FATCA.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.