Deputy Finance Minister Sergei Shatalov said, "This measure, as a further step toward establishing clear and transparent tax rules following a tax amnesty, would be entirely legitimate, and would be in accordance with international practice."
The idea was discussed at a meeting chaired by First Deputy Prime Minister Dmitry Medvedev Tuesday. Alexander Zhukov, the vice-premier, then put forward the proposal at the Russian Union of Industrialists and Entrepreneurs on Wednesday.
In the past, Russians have had to declare any major purchases of property, securities, or cars, as well as other items, to the tax authorities. The requirement was abolished in summer 2003.
Shatalov said monitoring of major expenditures by individuals relative to their real incomes was practiced by the majority of civilized countries. He said that Russian legislation had also allowed for this measure, but that in reality tax authorities had not been provided with the necessary data, or had been unable to analyze it.
Zhukov said Wednesday that the bill on a tax amnesty, designed to improve the country's investment climate, would be submitted to the lower house of parliament, the State Duma, later in the year.
"The bill has practically been finalized," the deputy prime minister said.
The tax amnesty will allow Russians to return funds held in foreign bank accounts to the country, as long as they pay 13% income tax on them.
