Tax amnesty

Tax amnesty or capital amnesty can be defined as a set of transitional legislative norms aimed at simplifying disclosure of foreign assets and controlled foreign companies by the tax residents of the applying state. The goal is to “turn the page” and to unburden taxpayers by forgiving their past liabilities. Also called “disclosure” or “legalization” programs, tax amnesties as they are constituted or considered by the governments of the former soviet territories are intended to put an end to the offshore economy thus raising future tax revenues of the states. The applicable rules are meant to stimulate taxpayers to declare their foreign properties and bank accounts in exchange for the removal of repression risk. Taxpayers may also expect to receive additional tax benefits with regards to the legalised properties. Besides, the amnesty presents an opportunity for the individuals to regulate their tax position before the respective states shall start receiving information under international exchange of financial data and by doing so to receive immunities against any sort of tax investigation.

MP Part can assist the clients in evaluating the amnesty opportunities in view of the clients’ individual circumstances. We will help in defining the list of properties and accounts to be disclosed, as well as in preparing the individual “special declaration” and the supporting documents required. Our services in the tax amnesty field include:

  • analysis of the risks and opportunities of various amnesty mechanisms in the clients’ situation and circumstances; 
  • planning and implementing an efficient legalization strategy in full compliance with the applicable legislation;
  • administrative support with compilation of the necessary forms, returns and disclosures and collection of the necessary information and documents.

Please contact us to discuss your concerns, ideas or plans in relation to the running tax or capital amnesties. We will be glad to provide recommendation and advice as well as assist in implementation of the necessary actions.