British Tax Havens to Share Data with Russian Authorities
Automatic Exchange of Information (AEOI) provides for the exchange of non-resident financial account information with the tax authorities in the account holders’ country of residence. Jurisdictions that are participating and implemented AEOI send and receive pre-agreed information each year, without having to send a specific request. The purpose of AEOI is to reduce the possibility for tax evasion.
Though, last year British and Russian Governments excluded each other from the list of countries of AEOI, British Offshore Tax Heavens i.e. Jersey, Guernsey, and the Isle of Man, the three islands have named Russia as one of the countries which they will automatically share asset information with for 2019 and 2020 tax years.
According to the news site RBC, Jersey, Guernsey and the Isle of Man are set to share details on bank accounts, properties, investments and other assets owned by Russian citizens to the Russian Federal Tax Service. Last year, the islands did not participate in automatic information sharing.
From the beginning of January, Russia will lift all previous restrictions on Russian citizens holding overseas bank accounts if those accounts are registered in a jurisdiction which participates in automatic information sharing with the Russian tax authorities.