Russia’s tax authorities have reported a number of unexpected hurdles while exchanging tax information with foreign jurisdictions. Some nations that are not openly hostile still pass data about Russians’ foreign accounts to Moscow, while others that are considered friendly increasingly fail to respond to information requests. This observation comes from Alexander Kadet, head of the transfer pricing department at the Federal Tax Service, cited by RBC. He declined to name specific countries.
“The main issues tend to arise with European partners where information exchange is notably slower and more complicated. Yet there are surprises beyond Europe as well. If you compile a list of unfriendly states and decide not to engage with them at all, you quickly see that complete disengagement is rarely feasible. There are many countries on that list, but there are trade offs to be weighed”, Kadet noted during the conference on Tax Environment in 2023, focusing on financial sustainability. The remarks highlight the delicate balance nations strike between cooperation and risk management in cross-border tax matters.
In another part of the discussion Kadet described a contrasting pattern: some countries that appeared cooperative at first have since cut back on providing tax information to Russia. He suggested that such reluctance may stem from concerns about secondary sanctions. The shifting willingness to share data underscores the uncertainty that can accompany international taxation in a rapidly changing political climate.
Earlier in the year 2023, Russia was added to a blacklist of jurisdictions that do not cooperate in tax matters with European authorities. This designation reflects ongoing tensions and the evolving landscape of international tax governance. The measure signals that non-cooperation is being tracked and potentially sanctioned, which can influence how Russian taxpayers’ foreign holdings are monitored by other countries.
Since 2017, Russia has been part of the global framework for automatic exchange of tax information under the auspices of the Organization for Economic Cooperation and Development. The OECD reports that a growing number of countries have expressed an intent to exchange data about foreign accounts held by residents of Russia, highlighting the expanding reach of compliance networks. Analysts in North America note that Canada and the United States have long been active participants in multi-lateral data sharing, which shapes how Russian residents and businesses report and verify offshore holdings. The evolving environment means both individuals and firms must maintain accurate records and understand how cross-border reporting can affect tax filings and enforcement for years to come. This topic remains especially pertinent to multinational corporations and expatriates who manage assets across borders [OECD tax transparency initiative, attribution].