What is the procedure provided for by the Tax Code for an individual who wishes to voluntarily declare previously hidden income in order to avoid penalties and administrative liability under the capital amnesty?
The issue of transparency in financial flows and the return of capital to legal channels is of particular importance. In an effort to strengthen citizens' trust in the tax system, the government has introduced a unique opportunity: capital amnesty. This measure allows individuals to voluntarily disclose previously hidden income and assets, while avoiding penalties and administrative liability.
The essence and guarantees of the amnesty
Capital amnesty is not just a formal procedure, but a real chance for individuals to legalize their foreign accounts, real estate, vehicles, shares in companies, and other assets that were previously undeclared. The key advantage is that the government provides guarantees of exemption from criminal, administrative, and tax liability for offenses committed before a specific date (for example, before January 1, 2022 for the fourth stage of the amnesty). This includes large fines for failure to report controlled foreign companies (CFCs) and potential criminal charges under economic articles.
The steps for an individual
1. Preparing a declaration. Fill out a special declaration form approved by Federal Law No. 140-FZ. It includes all assets that need to be declared, such as foreign real estate, accounts, vehicles, cash (if it is deposited in Russian accounts within 30 days), shares in companies, and information about CFCs.
2. Collecting supporting documents. Attach notarized copies of contracts (such as nominal ownership), an inventory of documents, account statements, reports on the movement of funds, and other papers that confirm the information provided in the declaration.
3. Submitting the declaration. Submit the declaration in person or through a representative with a power of attorney to any tax authority (except for specialized ones) or to the Federal Tax Service headquarters. It is important to note that the declaration must be filled out strictly according to the established form, signed on each page, and submitted in two copies, with one copy returned with a mark of acceptance as a guarantee of protection.
4. Meeting the conditions. The guarantees of exemption from liability are only valid if no criminal or administrative case has been initiated against the individual at the time of submitting the declaration. For cash, it is mandatory to deposit it in Russian accounts within the specified timeframe.
Capital amnesty is not only a tool for reducing the risks of individual citizens, but also an important step towards improving the country's economic environment. It promotes the return of funds to Russian jurisdiction, increases transparency in asset ownership, and strengthens trust between the government and society. For individuals, it provides an opportunity to start their financial lives anew, while for the government, it serves as a resource for development and improving the efficiency of tax administration.
The voluntary declaration process under the capital amnesty is a balanced and civilized approach to financial integrity, where every step is regulated by law and protected by government guarantees.