Russia Outlines Response To BEPS Project Plan
Russia’s Ministry of Finance has given its reaction to the OECD’s base erosion and profit shifting (BEPS) reports.
The Director of the Department for Tax and Customs Policy at the Ministry of Finance, Ilya Trunin, said in a televised interview for Russia 24 that, in 2014, Russia adopted several new laws to update its international tax rules to incorporate best practices. He suggested that Russia will therefore need to implement very few reforms in response to the BEPS proposals.
Trunin asserted that “Tax legislation is a matter of national sovereignty.” However, he identified that disparate rules lead to international tax avoidance and therefore Russia will seek to ensure that its rules are more closely aligned with those of other countries.
He said that textual changes would be needed to amend the laws to integrate basic principles and terms used in the tax systems of other countries. This will mean that Russia will be able to more easily engage in further international work on tackling base erosion and profit shifting at international level, he suggested.
