The Ministry of Finance of the Russian Federation proposes to impose an obligation on banks and other financial institutions to use the geolocation of customers’ mobile devices to determine their tax residence. This was reported byInterfax The relevant ministry said, citing a source familiar with the draft decision.
According to the agency, financial institutions will first track where their customers connect to their remote services (mobile application, personal account on the website, etc.). If these are predominantly foreign territories within six months, the organization will need to request information from the customer to determine his tax status.
As noted, such a mechanism is necessary for the Federal Tax Service to receive up-to-date data on taxpayers in a timely manner for the purpose of further automatic exchange of financial information with the competent authorities of other countries.
Current rules allow financial institutions to refuse service to a customer if he does not provide information about tax residence or provides false information when signing a contract. They will now be able to request such data during the service process based on the geographical location of the customer’s mobile device.
“They will evaluate tax residency based on geolocation data and, accordingly, request information from customers of financial institutions,” the agency source said about the essence of the upcoming changes.
Before that it was known which of the Russians offer most in March.
Formerly in the State Duma named Possible timing of the transition to a progressive taxation system.