On 19 January 2012, the Ministry of Finance of the Russian Federation registered an order with the Ministry of Justice of the Russian Federation to establish the means and procedure for the tax authorities to carry out currency control inspections (the “Regulation”).
The Regulation lays out in detail the inspection procedure, as well as the rights and obligations of the tax authorities and the parties being checked.
Pursuant to the Regulation, the tax authorities:
- oversee the activities of residents and non-residents (save for credit institutions and currency exchanges);
- carry out planned (with a frequency to be determined by the head of the relevant tax authority) and unplanned inspections (to check that previously discovered violations have been remedied); an inspection may also be carried out following a specific complaint; and
- perform this function to enforce adherence to the currency control regulations, as well as to maintain the completeness and authenticity of accounts kept in relation to currency operations.
The Regulation expands the authority of the tax authorities in the area of currency control, and it is intended to increase the oversight of taxpayers conducting currency operations. The Regulation will come into force within 10 days of its being officially published. To date, the official sources have not referred to the publication of the Regulation
[Order No. 123n of the Ministry of Finance of the Russian Federation “On Approving the Administrative Regulation for the Federal Tax Service to Conduct Governmental Functions and Monitor Currency Operations Carried out by Residents and Non-residents that Are Not Credit Organisations or Currency Exchanges”, date 4 October 2011]