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Russian Illegal Capital Export Over 37bn Dollars In 2010

Cash, Coins, Pen
Moscow, 23 May: Illegal export of capital from Russia amounted to 37.6bn dollars in 2010, according to a dossier by Sergey Glazyev, executive secretary of a commission under the Customs Union.

The dossier was presented at the last gathering of heads of state under the auspices of the Eurasian Economic Community's Interstate Council.

Under the balance of payments heading, 8bn dollars left the country as "mistakes and omissions", 15.7bn as "export revenues not received at the proper time" and 13.9bn as "fictitious transactions and securities".

Glazyev suggests a range of measures to prevent illegal capital export in the form of non-receipt of export revenues and non-fulfilment of advance payments for imports. In particular, he proposes a procedure for payment of VAT by importers who pay in advance for goods and services from non-resident entities, at the time that the payment - for example, a bank transfer - is made.

He also proposes ending the practice of accounting as extraordinary charges bad debts owed by non-resident entities (which reduces taxable profits). "If an importer or exporter has been unable to secure execution of a contract by a partner abroad or reimbursement when advance payment for imports is not honoured, then it should write these off as capital losses. It should not reduce tax liability," the dossier says.

(Passage to end omitted: dossier proposes single VAT system in Customs Union)

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