Russia’s Chief Taxman Says Crypto Could Erode State Taxation Profits

Daniil Egorov, head of Russia’s Federal Tax Service, mentioned cryptocurrencies as a potential means for tax evasion, in an interview with the Russian news agency RBC.

• Asked if he noticed any “innovative” tax evasion schemes recently, Egorov mentioned crypto. ”We are watching this market closely and understand that this payment system can significantly erode the taxation base,” he said.
• Egorov said the problem should be approached in a “systemic” way. He did not specify any details.
• He also mentioned the Federal Tax Service has been using blockchain technology for storing electronic power of attorney letters. However, he did not provide any further details. CoinDesk requested the Federal Tax Service about the details of the blockchain project.
• According to the current law in Russia, cryptocurrencies are recognized as a type of taxable property. The law detailing how cryptocurrency-related income should be taxed have passed one hearing in the parliament in February, but hasn’t moved forward since.
• Russian civil servants can not legally crypto.

Read more: Russian Ministries, Duma Want to Legalize Crypto Mining: Report