The implementation of the draft law will make it possible to create a legal framework for the return to Russia of property taken out of the country in violation of tax, currency and customs laws and ensure the re-registration of property in nominal possession to its actual owners.
The draft federal law On the Voluntary Declaration of Property and Bank Accounts (Deposits) by Individuals (hereinafter draft law) was developed by the Russian Ministry of Finance pursuant to the instructions of the President of Russia regarding the implementation of the Address to the Federal Assembly of 4 December 2014.
The objective of the draft law is to create a legal framework for the voluntary declaration of capital in Russia in 2015.
The draft law defines the types of property that may be declared: property in the possession of nominal owners, controlled foreign companies and bank accounts (deposits).
Declaration will consist of submitting to tax authorities a special declaration subject to confirmation of ownership rights to the corresponding objects.
The draft law provides guarantees to persons who have decided to use the right to legalise capital by ensuring the confidentiality of tax records and information provided, as well as by granting an amnesty for criminal or administrative offences that have been committed.
Legalisation does not involve the return of property located outside Russia with the exception of cases where such property is located in states with which a treaty on the avoidance of double taxation has not been signed or if the territory of location is on the blacklist of the Financial Action Task Force on Money Laundering.
The implementation of the draft law will make it possible to create a legal framework for the return to Russia of property taken out of the country in violation of tax, currency and customs laws and ensure the re-registration of property in nominal possession to its actual owners.
The draft law was considered and approved at a meeting of the Russian Government on 23 March 2015.