Offshore Islands Transparency

Offshore Islands Transparency

Offshore Islands Transparency of Maine, Jersey and Guernsey in 2020.

The fact that the Russian Federation is in the preliminary list of states whose information will be automatically submitted for verification in 2020 is only the Guernsey authorities said.

The representatives of the other two territories are silent about this sensitive issue.

How will this exchange affect the Russian business, which is registered on the offshore islands belonging to the Great Kingdom, and what shines on it further:

  • firstly, all assets of offshore companies will become transparent, which the RF tax service will certainly take advantage of;
  • secondly, fines will be showered. For concealing the existence of an organization controlled by a foreign company, a payment of 100 thousand rubles is envisaged. Failure to provide information on participation in such organizations is 50 thousand rubles.

Plus, you will need to return to the state budget income tax on the total amount earned for 2019. And also pay fines for violation of the terms of payment of personal income tax.

The most intriguing events will develop in the field of currency control regulation.

According to the rules, currency transfers with companies that are members of organizations that do not exchange financial data with Russia are prohibited at the legislative level.

Or such areas are little regulated by financial laws. Offshore Islands Transparency


Option 1. If the results of the audit show that in 2019 Russian companies carried out tranches of accounts through offshore systems, the question will arise: were there transactions in 2018 when there were no audits?

The Russian tax system will closely deal with the discovered companies in order to achieve its fiscal goal – to fill the budget by imposing a fine of 75% to 100% of income for a certain period.

Or at least create a situation of probability of a complete withdrawal of business in favor of the state.

Option 2. The legislation of the Russian Federation regulating foreign exchange activity has allowed, since 2020, to conduct transactions with foreign money with any organizations that automatically transfer data on the accounts of Russians to the Russian Federation.

If such a situation arises that these three islands, which are under the jurisdiction of the WB, become permitted, that is, they are included in the number of territories exchanging financial data, then all the operations of the Russians will become legal.

In addition, the opportunity will be opened to open foreign accounts on these islands, giving preferential currency conditions. In this case, it will not be necessary to report on tranches, provided that the amount of assets does not exceed 600 thousand rubles.

Based on the proposed scenarios, Russian business, which has foreign currency accounts in offshore companies, is in limbo.

It is not known whether Maine and Jersey will transmit billing information. Confirmation of consent to the exchange of data had to be given by the end of March 2020, which was not done.

Offshore Islands Transparency IN 2020

According to AllesEurope News, the islands of Jersey, Maine and Guernsey are ready for constructive cooperation and the signing of an exchange partnership with Russia for 2020.

But the Russian Federation excluded these islands from the list of desired territories with which the state would like to have an established exchange.

The head of the tax service of the Russian Federation spoke about the possibility of including these territories in the list, but a specific date was not indicated.

Overseas English islands have drawn up an action plan, the list of which includes informing the tax service of the Russian Federation about the accounts of its citizens who have foreign currency accounts in offshore zones.

If Russia did not ask, and the Crown possessions take the initiative, then it remains only to guess who needs publicity of such data and why.

In 2019, the issue of transmitting information on financial tranches of Russian businessmen did not arise. Perhaps in 2020, everything will be replayed, and the WB will change its position regarding Russia in this matter.

It is worth recalling that in 2019, the United Kingdom unilaterally refused to exchange data with the Russian Federation. The reasons for the refusal remained undiscovered.

Therefore, we can safely assume that the assets of British politicians or persons close to politics who collaborated with Russia were hidden from publicity.

At the end of the previous year, Russia announced a list of states with which it is planned to exchange bank statements in 2020. The list did not include Great Britain, nor its crown possessions.

In addition, Russia excluded from the list of partners of the state with which relations in the political arena intensified. Not included in the list are the United States, Canada, Georgia, Ukraine, Kazakhstan.

Turkey and Thailand were left without attention. Also, Lithuania was deleted from the list.

When the United Kingdom decided to refuse to open to Russia data on bank transactions of Russian citizens in the past 2019, its possessions – the Isle of Man, Jersey and Guernsey – did the same.

According to a representative of Guernsey, such a decision was based on the approach of the WB, which shares a small territory.

It is worth mentioning that in the updated territory exchange lists, Maine and Guernsey indicated the issuance of information not only for 2019, but also for 2018!

Therefore, there is a possibility of announcing offshore accounts of persons having accounts on the islands. Which is a complete surprise to them and a great risk to their business and reputation.

Jersey is still holding back from making such information public. But it is reliably known that the RF was definitely included in its initial list of exchange of banking data, formed on 01.01.2020.

Despite all the formidable announcements, there are always ways to find out when and what information an offshore bank is going to provide about you to the tax service.

To receive such information, it is enough to contact a foreign bank in writing, in which the accounts of your foreign institution are kept.

The appeal must justify the reasons why you need this statement. Banks meet customers because:

they do not always correctly and fully show the assets of companies storing their funds in the bank account in order to preserve customers and reputation;
banks do not need to publicize their activities in a negative light, so they are interested in not being punished, not fined, and they, in turn, would continue their offshore activities.

The accounting department of the company must compile quarterly, annual financial reports and provide declarations to the tax service. Contact us for more information.

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