Russia moves to monitor peer-to-peer bank transfers for undeclared income

Russia's Finance Ministry has proposed a new measure to compel the Central Bank to provide the Federal Tax Service with data on individuals suspected of frequently receiving income from others through peer-to-peer bank transfers. The amendment, which will be considered during the second reading of a budget package bill, aims to enhance tax scrutiny of these transactions.

The State Duma committee responsible for reviewing the bill is set to discuss it on November 15. The proposal would see the Bank of Russia scrutinize account transactions and share relevant information with the tax authorities if signs of "regularly receiving income from other individuals" are detected. The Federal Tax Service could subsequently request bank statements from the affected banks.

Currently, tax inspectors can only request bank statements for individuals not registered as sole proprietors if the authorities have issued a decision to collect a tax debt or a tax audit is underway. The Finance Ministry's amendment would introduce a new basis for such requests, drawing on data from the Central Bank. This move comes as the ministry drafts amendments to tighten scrutiny of transfers between individuals, with the aim of ensuring that such transactions are not treated as "gifts" and are properly taxed, even if they represent payments for services or other transactions.