Russia may be obliged to declare transactions with digital currencies

Russia

The Ministry of Finance of Russia proposed to oblige individuals and legal entities to declare transactions with digital assets in excess of 600,000 rubles per year. Already prepared amendments to the Criminal Code, Administrative Code and the Tax Code.
In the proposed amendments, any organizations operating in Russia, as well as individuals and individual entrepreneurs, are required to declare receipts and write-offs of digital currencies and crypto assets, the amount of which exceeds 600,000 rubles per year. There is no need to declare transfers between your own wallets. The calculation of the transaction amount is based on the exchange rate of the asset on the date of the transaction.
At the same time, it is also possible and even recommended to declare transactions for a smaller amount – according to representatives of the Ministry of Finance of the Russian Federation, this will allow “to obtain judicial protection”. The declaration must be submitted by April 30 next year.

The Ministry of Finance also proposed penalties for failure to provide relevant information. Articles may appear in the Tax Code implying a fine of 10% of the largest of the two amounts (receipts or write-offs). For violation of the reporting deadline, it is proposed to introduce a fine of 50,000 rubles. If the profit from such operations was not declared in the declaration, then the penalty will be 40% of the amount of unpaid tax.

In case of systematic evasions from declaring transactions with digital currencies on a large scale, it is proposed to introduce criminal liability. Article 199.5 of the Criminal Code of the Russian Federation entitled “Evasion of obligations to submit a report on transactions (civil transactions) with digital currency and on the balances of the specified digital currency” proposes to introduce a fine from 100,000 to 300,000 rubles or in the amount of salary or other income from up to two years, or forced labor for up to two years, or arrest for up to six months.

For violations on an especially large scale or by a group of persons by prior conspiracy, or with the use of a legal entity specially created for crimes, it is proposed to introduce a fine in the amount of 500,000 to 2 million rubles or in the amount of salary or other income from 18 months to three years, or forced labor up to five years, or imprisonment up to three years.

Note that transactions with digital currencies are considered large, the total volume of which within three years exceeds the equivalent of 15 million rubles, and an especially large amount is 45 million rubles.

As for the Administrative Code, then the Ministry of Finance of the Russian Federation proposes to introduce an article for organizing illegal circulation of digital financial assets and violating the rules for making transactions with them. In addition, fines are also provided for accepting digital currency as payment by persons who are not entitled to such operations.

For example, for organizing the release of digital assets and transactions with them, it is proposed to introduce a fine for citizens from 50,000 to 500,000 rubles; for officials – from 100,000 to 1 million rubles or disqualification from 6 months to a year; for legal entities – from 200,000 to 2 million rubles. For accepting digital assets as payment for goods and services without proper registration, the fine for citizens will be from 20,000 to 200,000 rubles with confiscation of assets; officials – from 50,000 to 400,000 rubles with confiscation, for legal entities – from 100,000 to 1 million rubles with confiscation.

As a reminder, back in May, the State Duma Committee on Financial Markets sent out a bill and amendments to the codes suggesting the introduction of fines of up to 2 million rubles or imprisonment for up to 7 years for the release and circulation of public crypto assets.