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UK Suspended the Exchange and Sharing of Tax Information with Russia and Belarus!

In case you missed it, on March 17, 2022, in an effort to inflict economic pain on President Putin and his regime, the United Kingdom (UK) suspended the exchange and sharing of tax information with Russia and Belarus under the UK’s exchange of information agreements. This means that Russia will not receive information under an Exchange of Information on Request, the Common Reporting Standard, or Country-by-Country Reporting.

With various automatic exchange of information deadlines approaching in the next months, we may see more countries choosing to suspend information sharing with Russia, thereby making it more difficult for Russia to collect taxes from its tax residents through these programs and agreements.

Taken from the announcement:

Suspending exchange of tax information, which will come into effect today, means that Russia will no longer receive information under any of the UK’s exchange of information agreements: Exchange of Information on Request, Common Reporting Standard or Country-by-country Reporting.

Today’s suspensions are one of a number of tax measures being taken by HMRC and the Treasury to support Ukraine and inflict economic pain on Putin’s regime.

For example, within the last week, the UK Government has announced that the £350-a-month payment made to families taking part in the new Homes for Ukraine scheme will be tax free, as well as HM Treasury and HMRC’s decision to ease custom declarations on aid and donations going to the people of Ukraine, making it easier to supply humanitarian aid to Ukraine.

These new economic measures demonstrate how the UK’s tax system can be utilised as part of the UK-wide response to Russia’s invasion of Ukraine, assisting in both adding additional economic pressure to Putin’s war regime and in providing practical and sustained support to the people of Ukraine.

This comes on top of introducing a ban on exports to Russia of high-end luxury goods, imposing asset freezes and travel bans on leading oligarchs and members of the Russian Duma, as well as providing humanitarian aid to Ukraine totalling almost £400 million and defensive weapons, including more than 4,000 anti-tank missiles, and essential civilian supplies like generators and medicines.

Check out the UK announcement here:

https://www.gov.uk/government/news/uk-suspends-tax-co-operation-with-russia#:~:text=The%20UK%20today%20(Thursday%2017,pain%20on%20President%20Putin%27s%20regime.

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UK Suspended the Exchange and Sharing of Tax Information with Russia and Belarus!

This document contains general information only and is not a substitute for accounting, tax, or any other professional advice or services. The information provided is considered accurate at the time of publishing and will not be updated with new regulation requirements.

Comply Connect – March 2024 – Issue 9

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