The State passes legislation allowing Russian banks to pass information on their U.S. clients to the IRS, as demanded by the Foreign Account Tax Compliance Act (FATCA). FATCA will come into force on July 1, 2014, and by this time the law that drags banks around the world into the U.S. combat against tax evasion will need foreign banks to supply information on the U.S. taxpayer’s accounts to the IRS. The first filing will no later than March 31, 2015. Banks that do not assist the law will face financial penalties on their U.S.-based income.
Russian law does not approve banks to do what FATCA needs. The law also contains Russia’s answer to FATCA: foreign banks situated outside Russia will be compelled to use information on Russian account holders, both individuals and legal entities, to the Russian tax service by September 30 each year.
