In Brief:
- In an interview, Russia’s head of Federal Tax Service, Egorov hinted at cryptos being a potential means for tax evasion.
- Speaking on Cryptocurrencies, he said that it can create quite significant erosion for the tax base.
- Egorov informed about Russia having launched a machine-readable power of attorney system on the blockchain.
In an interview, Russia’s head of Federal Tax Service, Daniil Egorov, spoke about everything from new tax regimes for businesses, to Cryptocurrency, to tracking food prices and a threefold increase in payments in the form of dividends to Cyprus.
In the interview, Daniil Egorov also mentioned cryptocurrencies as a potential means for tax evasion.
On being asked if there are new taxation evasion schemes lately, Egorov pointed out that various fraudsters do use technologies for anonymization in terms of provision of services.
He further added that it takes time to get to people using digital space after following the trail that they leave behind as a result of their activities. Talking about cryptocurrencies, Egorov informed, “If we talk about cryptocurrencies, then we are now quite closely engaged in this market, realizing that this settlement system can create quite significant erosion for the tax base”.
Overall, without revealing the hints about the “schemes”, Egorov said the problem should be approached in a “systematic” way.
Talking about Blockchain, Egorov revealed, “We have launched a machine-readable power of attorney system on the blockchain. As part of this pilot project, we saw a beautiful opportunity to create a system that could theoretically absorb the electronic circulation of powers of attorney”.
In Russia, the rising popularity of Cryptocurrency is evident as more than 75% of Russia’s investors think of cryptocurrencies like Ether, Bitcoin, and Litecoin as the top assets in their portfolio. Also, cryptocurrencies are recognized as a type of taxable property in the country.
In fact, recently, a working team was formed in Russia to address the complex issue of developing regulations for the crypto mining industry.
