Nikita Deynega has told Delovoy Peterburg about the differences of the 4th Wave of Capital Amnesty in Russia

On March 14, 2021, the 4th wave of Capital Amnesty (a voluntary legalization of previously hidden foreign assets without prosecuting their owners because of violations of the law) was launched in Russia.

Nikita Deynega, Senior Associate, Head of Tax and Administrative law practice at Maxima Legal, told Delovoy Peterburg that the main differences of the current wave are the expansion of the perimeter of assets which may be disclosed as well as the introduction of additional requirements to repatriate such assets to Russia.

For example, previously it was possible to declare only controlled foreign companies (CFC), foreign accounts and property. The 4th wave allows HNWI to disclose to the fiscal authorities information about financial assets too: derivative financial instruments (options, futures, forward contracts, etc.), rights of claim from insurance contracts and cash. All protection guarantees will be applied only when the assets are returned to Russia.

At the same time, the  4th wave of Capital Amnesty may be more attractive than the previous ones because of the Western sanctions pressure. “In addition to formal restrictions, foreign institutions (banks, brokers, financial organizations) and counterparties often refuse to continue relations with Russian individuals and in the absence of any regulatory prescriptions, simply due to the “toxicity” of domestic residents and everything associated with them (assets, business, activities),” Nikita noted.

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