The FTS again proposed to add Canada to the list of countries that do not exchange tax data

The Federal Tax Service (FTS) of Russia proposed to include Canada in the list of states that do not provide information exchange for tax purposes, said in the draft order of the department, published on the federal portal of draft regulatory legal documents.

The Federal Tax Service of Russia periodically reviews the list of states and territories that do not provide for the exchange of tax information. Now it includes 98 states and 18 territories. According to the document, from next year the list will include 90 states and 17 territories, that is, the Federal Tax Service also proposes to exclude 9 states and one territory from the list.

Canada already appeared in the draft order of the Federal Tax Service in 2019, but was excluded from it in the final version of the list.

Following the start of a special military operation in Ukraine, several Western countries, including the United Kingdom, Germany and the United States, suspended the exchange of tax information with Russia and Belarus, making it more difficult for the Russian authorities to obtain information about the income of Russian individuals and companies controlled by them abroad.

The list of countries that do not exchange tax information with Russia is used for the purpose of taxing the profits of controlled foreign companies. According to Russian law, the profits of a controlled foreign company are exempt from taxes in some cases if its permanent location is a state or territory with which Russia has a tax treaty, provided that they are not included in the specified list. Tax data exchange is used to avoid double taxation.

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