Russian Authorities Are Concerned about Cryptos as Means for Tax Evasion

Daniil Egorov, the Head of the Russian Federal Taxation Service (FTS), is concerned that cryptocurrencies could be a path for tax evasion. During an interview with a news agency, RBC, Egorov mentioned that the tax authority is ‘closely watching’ the crypto market and assessing its potential to ‘significantly erode the country’s taxation base.

“When you get into the digital space, you still leave a trail somewhere. And it’s a matter of time before this trail is identified,” Egorov commented. Although the chief of the tax agency said that the matter should be addressed systemically, he did not provide details in that regard.

Still, he recognized that the FTS uses Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology to store electronic forms of power of attorney letters. “We would like to find solutions that shut down a problem as a phenomenon rather than just identifying actions by a specific player,” Egorov pointed out.

In June, the Russian Foreign Minister, Sergei Lavrov, stated that cryptocurrencies could play a critical role in international settlement deals at the Primakov Readings Forum. The comments came in the context of the Minister’s speech, where he clarified that Moscow does not plan to abandon the US dollar completely.

Lavrov commented that cryptos could fit in some international settlement’s use cases when the time comes. “I think the time will inevitably come when cryptocurrencies will play a very significant role [in trade and finance] and occupy a very significant segment of the international settlements sector,” he said.

Digital Ruble in the Making

Moreover, Russia has progressed with its central bank digital currency (CBDC) initiative as the country is determined to develop a digital ruble prototype in early 2022 and is set to launch a pilot program. The Bank of Russia is reportedly planning to charge fees for all CBDC transactions. However, according to Prime, quoting Kirill Pronin, the Bank of Russia’s Director of the Financial Technologies department, the fees will still be lower than those charged for wire transfers.

Furthermore, transactions performed with CBDCs, digital ruble, will not be higher than those completed through the Russian Faster Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term System (FPS), an instant interbank transfers system.