The Federal Tax Service revealed in 2023 4.6 times more violations of currency legislation compared to 2022. The reasons for these figures and the prospects for strengthening control commented RBC tax consultant Tax Compliance Ekaterina Kopylova.

The main reasons for the growth

The moratorium on currency law compliance checks, which was in effect in 2022, was not extended for 2023 - the Federal Tax Service separately drew attention to this.

In our expert's opinion, the significant increase in the number of cases of currency law violations initiated last year is directly related to the termination of the moratorium on inspections, as well as the overall increase in the number of currency transactions.

Why does the number of cases initiated by the Federal Tax Service exceed the number of violations?

Carrying out inspections of compliance with currency legislation obviously does not always end with the initiation of cases of administrative offenses, and those, in turn, do not always end with prosecution in the form of fines.

This is facilitated by the current moratorium on fines, which was introduced as a measure leveling the impact of sanctions. In response to requests from authorized persons, residents can always confirm both the absence of the fact of the offense itself and show that it was caused by the imposed sanctions.

Probably the difference reflects the number of cases in which residents were able to confirm the legality of their actions and the absence of violations. It is also likely that part of this statistic consists of situations of termination of the case on procedural grounds, for example, in connection with the expiration of the statute of limitations for bringing to administrative responsibility.

What to expect in 2024?

This year we can expect strengthening of currency control by the Federal Tax Service. In 2022 and 2023 currency regulation was unstable. The state had to respond to sanctions through special measures. At that time, businesses were forgiven for some mistakes in currency transactions, but now such relaxations are likely to become less and less.

Increase of thresholds for foreign transactions, easing of some fines only takes minor transactions out of control, however, in general, the tax service gives an unambiguous signal to businesses and individuals about the need to comply with the requirements of currency legislation in the current environment.

The closest attention will still be paid to the return of foreign currency proceeds under foreign trade contracts, provision of relevant documents and reporting. As for individuals, first, the facts of reporting on foreign accounts will be checked.