The Federal Tax Service (FTS) proposed to include Canada in the list of states and territories that do not provide information exchange for tax purposes with Russia.
The list of states that do not provide for the exchange of tax information is used, in particular, for the purposes of taxing the profits of controlled foreign companies. For example, according to the Tax Code of the Russian Federation, the profits of a controlled foreign company in some cases are exempt from taxation if its permanent location is a state or territory with which Russia has a tax treaty, provided that they are not included in the specified list.
It should be noted that at the same time, the list itself was proposed to be reduced, excluding nine other states and one territory from it. Now it includes 98 states and 18 territories.
As stated in the draft order of the tax service, published on the official portal of draft regulations, from next year Canada will be included in the list of such states. In total, the new list will include 90 states and 17 territories. In particular, the Federal Tax Service proposed to exclude Barbados, Bahrain, Colombia, Costa Rica, Nigeria, Pakistan, Saint Lucia, Uruguay and Ecuador from the list of countries that do not exchange tax information. Gibraltar has been proposed to be excluded from the list of such territories.