Home News Crypto can potentially cause “significant erosion”, Russia’s tax boss says

Crypto can potentially cause “significant erosion”, Russia’s tax boss says


The Federal Taxation Service (FNS) of the Russian Federation is currently actively studying the cryptocurrency market. Head of the department Daniil Egorov said in an interview with RBC, local publication.

“We’ve become pretty involved in this market. Realizing that this settlement system can create quite a significant erosion for the tax base,” he said. The head of FNS also noted that anonymization technologies can be used to avoid taxes. Participants in the digital world, however, leave traces.

Egorov stated the need to declare “the points and volumes of calculation by both; key stakeholders of any such systems and users.”

Adoption of the bill

On February 17, the State Duma of the Russian Federation in the first reading adopted as a basis a bill on taxation of transactions with cryptocurrencies. 375 deputies supported the document, 13 people abstained.

The draft law “On Amendments to Parts One and Two of the Tax Code of the Russian Federation”; recognizes digital currency as property and taxes income from transactions with it with income tax or personal income tax.

According to the head of the State Duma Committee on the financial Market Anatoly Aksakov, the adoption of the bill is moving slowly because of “questions about essential categories”, that regulators have. The media reported that the Central Bank and the Ministry of Finance; could not agree on the access of tax authorities to bank accounts to control cryptocurrency transactions. But the ministry assured that there were no disagreements.

“There are no plans to change anything yet”

Recall that earlier in October, Deputy Finance Minister of the Russian Federation Alexey Moiseev stated that the Russian authorities do not plan to prohibit citizens from buying Bitcoin (BTC) or other cryptocurrencies on foreign exchanges.

“Now I can only say that settlements [in cryptocurrency] are prohibited in the territory of the Russian Federation. At the same time, citizens can buy and use wallets outside the Russian Federation. So far, I think, it will remain so. There are no plans to change anything yet,” Moiseev said.

According to him, regulatory authorities will focus on banning the use of digital currencies; as a means of payment within the country in order to avoid losing control over the money supply.

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