The Federal Customs Service, the Federal Tax Service and Currency Control: how Big Brother works in Russian Foreign economic Activity
Many people still think that foreign economic activity is about how to negotiate with a customs officer or find the right bank. That somewhere there are gray areas, loopholes, that you can play with the documents a little. So, those times are over. Finally.
The illusion that government agencies are lagging behind somewhere, that they don't see the whole picture, is the most dangerous misconception in our business today. Big Brother in the form of a combination of the Federal Customs Service, the Federal Tax Service and currency control does not just exist, it has been working in real time for a long time.
How has everything changed?
It all didn't start yesterday. The turning point occurred sometime in 2017-2019, when key information exchange agreements were signed, and preparatory processes were underway to enable the exchange of information on a regular basis and in real time. How was it before? Until 2017, there were a number of problems related to the exchange of information between the Federal Customs Service and the Federal Tax Service, due to differences in the level of information security of tax and customs authorities. Interaction was also hampered by the fact that requests were made in writing on the letterhead of the control body sending the request. Which greatly increased the time lag between the inspectors.
Right now, information exchange is going on normally, automatically. Customs sees your declaration, and this data immediately "flies away" to the tax office. The bank sees your payment under the contract, and this information is also sent where it should be. All three agencies look at your deal from different angles, but they see the same thing.
Invisible checks
Previously, the tax audit began after some kind of signal, complaint, or year-end. It's not like that right now. The Federal Tax Service can start analyzing your transactions without even notifying you. They see that you delivered the product at one price and pay for it at another. They see that one volume has arrived according to the documents, and another according to the statistical form.
They can spend months collecting information, comparing data from customs, from a bank, and you won't even know about it. And as a result, you can get a requirement with a non-trivial request about: "Providing explanations on the contract number so-and-so, with the attachment of supporting primary documents." And at this point, it's too late to try to change anything. They have all your cards in their hands.
A classic example is the purchase in the EAEU
Here is the clearest illustration of how it works. Let's say you buy a product in Kazakhstan or Belarus. One simple transaction, but you report to three authorities at once:
- You submit a statistical form to the customs office about the import of the goods.
- You are submitting an application for importation and payment of indirect taxes to the Federal Tax Service.
- If the contract is more than 3 million rubles, you register it with the bank for currency control purposes. And even if you find an opportunity to coordinate and sign a contract for a smaller amount, so as not to register the contract, the tax service can get information on payments made from your checking account by requesting information from the bank where you have a checking account.
Three different agencies receive information about the same shipment. And rest assured, they will compare these data with each other. Any discrepancy is an automatic red flag and a reason for deeper verification, both jointly and individually by each inspection body.
New payment control
And in order to close this circle completely, starting in 2024, the Federal Tax Service updated the calculation form for income paid to foreign organizations. There is a special section 5. Now you are required to report on all payments abroad specifically for goods.
What does this mean for the tax service? Now they can automatically compare three indicators.:
- What did you bring (FCS data).
- How much did you pay for it (data from the bank control statement).
- What you yourself have shown in your tax statements.
The circle has closed. Any attempt to lower the cost, make a payment past the cashier, or use gray schemes becomes visible to the system almost instantly.
In conclusion
So what's the end result? It won't be like it used to be. The era when one could rely on the sluggishness of government agencies has passed. Customs control and currency control are fully integrated with tax control.
Today, the transparency of foreign trade is to do everything in white, because this is the only working strategy. Know the laws, apply for documents correctly, and pay taxes. Any other way is just to delay the inevitable problems. And the sooner you understand this, the more secure your nerves and money will be.
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Author: Inna Zaporozhtseva, expert in financial and operational compliance and business systematization.
