The composition of the face: when it is necessary to report on foreign assets, and when it is better not to?

The composition of the face: when it is necessary to report on foreign assets, and when it is better not to?

The authorities demand that owners of foreign accounts and companies report to the tax authorities. And for refusing to do this, they impose fines. However, the situation is ridiculous when a person decides to disclose his data on an honest basis, and for this, he still receives a penalty – after all, according to the law.

A taxpayer or an honest criminal?

By law, the Russian taxpayer is required to report on their accounts and companies that are open abroad. I can hardly trace their presence or absence of power at this stage of time. Therefore, it is so crucial for them that the Russians independently report on their foreign assets.

However, at this point in time, there are more and more reports that such information is being used against the Russians themselves, which makes the taxpayer’s honesty punishable.

Our colleagues talk about how people who come to tell about their foreign bank account immediately receive a fine on the spot. For what? The fact is that according to the law, it is required to declare the existence of an account no later than 30 days after its opening at the place of its registration. Even suppose that a person can physically be absent in a given month in the country is apparently impossible. But when opened – get a fine.

Motivation is somehow reduced, is not it?

There was even information that Russians who came to Russia for a few days, although they reside in another country, received a penalty for failing to report an account. Here the true question is: where did the tax authorities find out about the invoice (we hope that the consultants did not turn in) and how quickly did they discover that the person crossed the Russian border? Put a person in a cap on the border or in the Customs system, like in action movies, does tracking work?

How to report a foreign bank account

According to the law, as mentioned above, if the Russian, and more specifically, the Russian currency resident, who are, and the Russians who have been in Russia at least one day in a year, and permanent residents, opened an account or deposit in a foreign bank, then he must report this in the FTS within one month.

The penalty for passing such date is from 1,000 dollars to 5,000 dollars, which somewhat reduces the voltage.

Opening a personal account remotely in Panama at Banesco Bank – 1999 USD

In addition to the notification of the opening, it is necessary to inform about the closure of the account or about changes in the details. Also, the authorities require annual reporting on the movement of funds in a foreign account. And this item is the most wasted, even without fines.

The fact is that tax authorities have the right to request supporting documents, including account statements and even require them to be translated into Russian. If abroad is a purely cumulative account with reporting points every month, a small piece of paper will be issued. However, if you really live abroad and just pay from this account (and, at least once a year, visit relatives or business affairs in Russia), then you have to prepare a large pile of paper.

Colleagues talk about 1000-page printouts from the bank by day, and even in 3 currencies. If you request a translation into Russian at a price of 500 dollars per page – consider yourself. It is not necessary that such an amount at a time happens on the account.

The problem with bank accounts is that it is rather difficult to “get rid” of currency residency if you maintain ties with Russia. While it is possible to temporarily not report such accounts, it can be difficult to identify small Russian accounts abroad. But the situation will change when they introduce the automatic exchange of information. Even if it is partial, the data on the accounts somehow crawl to the relevant authorities.

Therefore, an open question: to declare or not? By law, this is a must. However, honesty is punished here. If you are not sure about the decision, please contact us.

How to report on a foreign company

 Another case where a Russian is obliged to report to the relevant services about his assets abroad is a company or a CIC. Here, the main for determining the need for reporting are tax residency (183+ per year), ownership of a foreign company from 10%, creation of a form without a legal entity (funds, trusts), as well as the presence of companies that are controlled as such.

Even about securities that are controlled through CFC, you need to report before March 20 of each year (starting from 2017).

It is necessary to register within 3 months after the creation of the CIC or when there is a change in the share of the business.

There are more fines and ranges from 50,000 to 100,000 dollars for each company (overdue registration, no registration, etc.). There are 7 strategies to adapt to de-offshore and minimize their impact.

But in general, how to prepare in the era of total transparency, read our material.

How to report on foreign real estate, gold, car or plane

We hurry to reassure – other classes of assets besides accounts/deposits and companies are not necessary to declare in Russia. At least for now. By the way, a similar situation even in the United States invented FATCA – bank accounts are turned upside down and banks are closed, and they don’t even look at foreign real estate.

Russia allows, without any special restrictions, to own foreign real estate, make deposits in private gold vaults, acquire expensive and not very expensive cars, build castles and sail our own yachts. These types of assets remain on your conscience.

Perhaps this is why the popularity of gold deposits in secret private vaults in Switzerland and Singapore is growing, and profitable or agricultural property is being acquired in Chile. There are those who invest in paintings, cars and other antiques.

This allows you to save on reporting and hide assets away from prying eyes.

In general, you need to think about a reasonable plan B, otherwise, your condition will turn into the Russian national football team.