Russia cracks down on bank transfers to combat tax evasion and undeclared income
Russian authorities are tightening oversight on bank transfers between individuals. The Ministry of Finance has proposed a new system for regular data sharing between the Federal Tax Service and the Central Bank. The move aims to track recurring payments rather than one-off transactions, raising concerns about undeclared income and tax evasion. Under the current rules, tax authorities could only access account details under strict conditions. Now, they want automatic alerts and real-time data exchange to monitor financial activity more closely. The push comes as regulators focus on systematic transfers, which could hide wages or other unreported earnings.
The new system will also require all bank accounts to be linked to taxpayer identification numbers (INNs). This step increases transparency, giving authorities a clearer view of individuals' income and spending. Recipients of frequent transfers may soon need to explain where the money came from—or face penalties. As scrutiny grows, some may opt to work entirely off the books. Others could register as self-employed, paying a small tax of 4–6% to avoid deeper investigations. Both approaches are expected to become more common in response to the tighter controls.
The proposed changes will give tax authorities broader access to transaction data. Individuals receiving regular payments may need to provide proof of income to avoid fines. The system is designed to close loopholes and ensure compliance with tax laws.
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