A ten-month long tax amnesty which began last year has yielded the Russian government about USD150 million in tax after a last minute rush of declarations, it has been reported.
According to the RIA Novosti news service, which cited data from the Federal Treasury, a total of 28.19 billion rubles (USD1.15 billion) was declared during the amnesty, which closed on 31st December, 2007, with about 83% of those declarations coming in the last month of the scheme.
The report stated that Moscow accounted for the largest portion of the tax payments at 2.1 billion rubles ($90 million). Surprisingly, Moscow was followed by the sparsely populated region of Chukotka, governed by the billionaire Roman Abramovich, which saw 565 million rubles ($23 million) in payments.
The tax amnesty went into effect on 1st March, 2007. It was designed to encourage non-compliant taxpayers to regularise their tax affairs, in an attempt by the government to boost tax revenues and reverse capital flight from the country.
Under the scheme, the authorities promised those who declared monies immunity from prosecution, in return for the payment of income tax at a rate of 13% (the same rate as Russia's income tax) on the previously hidden assets. Incomes undeclared since before January 1, 2006 were exempt from penalties for personal income tax evasion. However, the amnesty did not extend to those already convicted of tax evasion and tax related crimes.
In a bid to tempt more declarations, the amnesty terms were tweaked shortly before its commencement so that taxpayers were not required to have any contact with tax officials, and payments could be made directly into a special Federal Tax Service bank account.
According to the government, information submitted by amnesty participants will not be used as evidence against individuals in criminal or administrative cases.
It has been estimated that about USD160 billion in capital fled Russia in the aftermath of the collapse of the Soviet Union in the 1990s.
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