How will the tax service control the accounts of Russians?

Due to the active changes in legislation after the elections of the President of the Russian Federation, citizens learn about new political trends in the local media almost every month. One of the problems that worries tens of millions of Russian residents is the news that as of July 1, 2018, the Tax Service now controls the accounts of Russians.

Will the Federal Tax Service fully control transactions on individual accounts in the Russian Federation?

The reason for the excitement was the amendments to Article 86 of the Tax Code of the Russian Federation in accordance with Federal Law N 343-FZ “On Amendments to Parts One and Two of the Tax Code of the Russian Federation” concerning income on deposits of Russians.

Contrary to mass discontent, the changes made to the Tax Code of the Russian Federation are associated with tightening control over accounts in precious metals - OMS (impersonal metal accounts). Since 2013, employees of the Federal Tax Service (FTS) have had the right to request information from banks about money transfers from individuals . From July 1, 2018, operations with deposits in precious metals were added to the powers of tax officials.

The population's dissatisfaction was mainly associated with false information about the introduction of personal income tax on card transfers between clients. The most ardent opponents of the amendments to the legislation demanded that the Tax Service be prohibited from having complete control over the accounts of Russian citizens.

The official media have already denied these rumors: employees of the Federal Tax Service will tax only those transactions that are prescribed in the Tax Code of the Russian Federation.

For what purposes were new amendments to the Tax Code of the Russian Federation adopted?

Changes in Russian legislation are largely related to the accounts of foreign citizens. If the owner of a bank card or account is not a resident of the Russian Federation, the powers of the Federal Tax Service are expanded.

The Government of the Russian Federation accepted for consideration the initiative of the Cabinet of Ministers, according to which the Tax Service will receive full control over the accounts of Russians opened in foreign banks.

Such measures are intended to tighten control over attempts to legalize income (money laundering) obtained through criminal means using foreign capital on the territory of the Russian Federation. In this regard, the Government of the Russian Federation requires Russian banks to control the money on the cards and accounts of foreign citizens.

Tax control over the accounts of Russian citizens will not be so strict. Despite rumors, the Federal Tax Service does not have the right to write off personal income tax for transfers between individuals and unconfirmed receipts on cards. The condition is relevant, including for citizens’ electronic wallets.

Tax authorities have had the right to request information about accounts since September 1, 2013. In 2016, an amendment was adopted to the Tax Code of the Russian Federation, according to which banks are required to provide tax authorities with data on the opening and closing of customer deposits. From July 1, 2018, impersonal metal accounts will be added to deposits in rubles and foreign currency.

In what cases does the Tax Service request data on deposits of individuals?

The Federal Tax Service has had access to the bank accounts of Russians for 5 years. But banks and other financial organizations provided data only at the request of tax authorities. There is no clause in Russian legislation according to which information is transmitted by banks automatically. The only exception is data on opening/closing deposits.

Transactions on citizens' accounts are subject to mandatory control only if Federal Tax Service employees become interested in the activities of individuals . If there are suspicions of illegal circulation of funds or evasion of mandatory contributions to the budget, the Federal Tax Service sends a request to the bank. Only after an official request do bank employees provide information about money transfers to depositor accounts.

According to the Tax Code of the Russian Federation, tax is imposed on confirmed receipts that are the income of an individual. Money transfers using bank cards are not included in this list.

The Federal Tax Service is also not going to exercise control over all transfers of clients with plastic cards. There must be a valid reason for sending a request to the bank for a specific account holder. The basis for control over the activities of an individual may be, for example, an application to the Tax Service for a refund (deduction) on a mortgage. In this case, tax officials check the payer’s accounts and his official income.