Can we expect the Europeans to follow? Could we see an end to CRS Reporting with Russia in addition to DTA's suspended...
?
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WASHINGTON (Reuters) -The U.S. Internal Revenue Service has suspended information exchanges with Russia's tax authorities in a bid to hamper Moscow's ability to collect taxes and fund its war against Ukraine, the Treasury Department told Reuters on Tuesday.
Under a 30-year-old tax treaty, the IRS and Russia's Federal Tax Service have shared information to aid domestic tax collections and enforcement of tax laws in both countries. The IRS can request information about U.S. taxpayers from Russian authorities and vice-versa.
The Treasury said it has not shared any tax information with Russian authorities since Russia's invasion of Ukraine began on Feb. 24, but the action disclosed on Tuesday formalizes the suspension.
"This ensures that the United States is not providing any information that could contribute to the enrichment of the Russian government through increased tax collections or facilitating in any way the persecution of Russian dissidents or the targeting of Ukrainian citizens or businesses," the Treasury said in a statement to Reuters.
The move stops short of suspending the entire tax treaty with Russia, a step that U.S. Senators Rob Portman and Ben Cardin had requested https://www.portman.senate.gov/sites/default/files/2022-03/Russia Tax Convention Letter to President - FINAL.pdf
President Joe Biden take in addition to suspending the information exchange.
Britain, which in recent years had become a haven for wealthy Russian elites, said last month that it had halted tax information exchanges with Russia and Belarus, which is an ally of Moscow.
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WASHINGTON (Reuters) -The U.S. Internal Revenue Service has suspended information exchanges with Russia's tax authorities in a bid to hamper Moscow's ability to collect taxes and fund its war against Ukraine, the Treasury Department told Reuters on Tuesday.
Under a 30-year-old tax treaty, the IRS and Russia's Federal Tax Service have shared information to aid domestic tax collections and enforcement of tax laws in both countries. The IRS can request information about U.S. taxpayers from Russian authorities and vice-versa.
The Treasury said it has not shared any tax information with Russian authorities since Russia's invasion of Ukraine began on Feb. 24, but the action disclosed on Tuesday formalizes the suspension.
"This ensures that the United States is not providing any information that could contribute to the enrichment of the Russian government through increased tax collections or facilitating in any way the persecution of Russian dissidents or the targeting of Ukrainian citizens or businesses," the Treasury said in a statement to Reuters.
The move stops short of suspending the entire tax treaty with Russia, a step that U.S. Senators Rob Portman and Ben Cardin had requested https://www.portman.senate.gov/sites/default/files/2022-03/Russia Tax Convention Letter to President - FINAL.pdf
President Joe Biden take in addition to suspending the information exchange.
Britain, which in recent years had become a haven for wealthy Russian elites, said last month that it had halted tax information exchanges with Russia and Belarus, which is an ally of Moscow.
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. We may end up in a world with two parallel financial systems and two spheres of influence. One in west and one in east. With future growth and wealth all predicted to come from the east this would really not be good look for the west.
