Exchange Of Financial Information Research Articles

Russian Anti-Offshore Policy: Current Regulation and Perspectives

The paper outlines the regulatory landscape of an anti-offshore policy in Russia. In the first part of this paper, the author gives an overview of effective regulations against offshore businesses that Russia has adopted in the past decade. The CFC rules were developed and subsequently passed because of Russia’s participation in the BEPS project. They are of the highest importance for the implementation of the anti-offshore policy. Other measures include transfer-pricing rules, registers of beneficial owners, exchange of financial information and revision of double tax treaties with Cyprus, the Netherlands, Luxembourg and Switzerland. Sanctions imposed by the EU, the USA, the UK and their allies against Russia, Russian individuals and companies in 2022 and counter-measures against Western countries and their residents introduced by Russian authorities also stimulate deoffshorization of the Russian economy. They have limited the free movement of capital between offshore holding companies and their Russian subsidiaries and, consequently, have contributed to the isolation of the Russian economy from the rest of the world, including its offshore infrastructure. The second part of the paper deals with the proposals for the Russian anti-offshore policy. The author shares his ideas on how to make the policy for deoffshorization of the Russian economy more effective. A few of these anti-offshore actions have already been implemented in draft laws and are currently being considered in the Russian Parliament. All of the measures that are being considered would result in unfavourable tax implications and possible damage to the reputations of those Russian individuals and organizations who still use offshore companies and trusts for the purposes of minimizing taxation and maintaining anonymity. The most important action proposed by the author for the implementation of the anti-offshore policy is the forced deoffshorization of strategic enterprises. Passing the relevant law would entail fundamental changes to the Russian business environment and result in the restoration of economic sovereignty over the Russian economy.

A Domain-Specific Accelerator for Ultralow Latency Market Data Distribution System

Ultralow latency parsing of financial data is gaining significance in the high-frequency trading of the security exchange market. Hardware-aided systems exhibit superior improvement of latency over traditional software solutions, but flexibility may suffer when processing the financial protocol. This article presents a domain-specific accelerator for the market data distribution system, which integrates a financial information exchange adapted for streaming (FAST) decoder, a 10-Gbps network interface, and a high-speed PCIe host interface into a single field programmable gate array (FPGA) acceleration card. The proposed FAST decoder adopts the finite state machines-coordinated sequence mapping table to achieve run-time reconfigurability over fine-grained FPGA programming, and 16 fields can be decoded simultaneously in a pipelined manner, resulting in a decoding latency of only 33 ns. Evaluated on the Xilinx Alveo U200 acceleration card, this work improves the latency of decoding a FAST message by 26%–72% than state-of-the-art FPGA designs, and outperforms the software baseline by <inline-formula xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink"><tex-math notation="LaTeX">$&gt;27\times$</tex-math></inline-formula> in terms of latency covering both decoding and communication.

Dedollarization as a Direction of Russia's Financial Policy in Current Conditions.

Under financial sanctions imposed on it by the US and the EU, Russia accelerated dedollarization of the economy in order to protect its sovereignty in strategic rivalry with the US. To this end, a set of strategies has been developed, such as reducing the direct use of US dollars, cutting the share of the dollar in foreign exchange reserves, expanding nondollar funding, increasing gold reserves, as well as reserving and creating its own systems of payment and exchange of financial information. This practice is of great importance for reorganizing the dollar-dominated international monetary system and establishing a new economic and financial system.

Storage and exchange of financial information: issues and required standards

This article is devoted to the analysis of the problems of storage and exchange of financial information in the context of the modern financial market. The article examines in detail the most common problems faced by companies, banks and other financial institutions that store and exchange financial information. For each problem, it describes its impact on the financial system and proposed standards that can help solve the problem. In addition, the article also examines blockchain technology in detail and its possible use in the context of storing and exchanging financial information. The conclusions of the article state that solving the problems of storing and exchanging financial information is an important task for ensuring the stability of the financial system, and the use of blockchain technology can be an effective solution to achieve this goal.

When entrepreneurship meets finance and accounting: (non-)financial information exchange between venture capital investors, business angels, incubators, accelerators, and start-ups

When entrepreneurship meets finance and accounting: (non-)financial information exchange between venture capital investors, business angels, incubators, accelerators, and start-ups

Analysis of the Functioning of the Automatic Exchange of Information about Financial Accounts after Implementation of the Common Reporting Standard

The adoption of the Common Reporting Standard (CRS) by the OECD in 2014 raised many concerns. Banks were particularly obliged to implement many changes in order to properly collect and aggregate data on tax residence of their clients and correctly report them to the tax administration authorities. The aim of this article was to assess the functioning of the CRS, taking into account the benefits of implemented changes and critical voices regarding the functioning of the standard. The efficiency of the solution based on OECD data and a critical analysis of some aspects of the CRS were presented. The adopted research method was based on verification of official OECD documents and comparative analysis of data presented by the organization with the research conducted by scientific institutions and other private and public entities. According to the results of the research, the automatic exchange of financial information is not functioning optimally, and reforms need to be carried out. The additional revenues generated by the CRS are relatively low compared to the tax losses still generated by tax optimization.

Cessation of Financial Information Exchange with the Russian Federation: Implications for Domestic Financial Sovereignty

Cessation of Financial Information Exchange with the Russian Federation: Implications for Domestic Financial Sovereignty

Internationalization of Countering Dishonest Tax Practices

According to the estimates from 2013, 8 per cent of the global capital was located in the so-called ‘offshore zones’, or jurisdictions used for tax optimization, which was $7.6 trillion at the time. Locating funds in tax havens resulted in a reduction of revenue in the relevant jurisdictions of between $500 billion and $600 billion per year. International community has recognized the need to adopt international regulations to counteract the erosion of the tax base. For this purpose, the Common Reporting Standard (CRS) was adopted in 2014. The main idea behind implemented changes was to have an effective exchange of financial information between national tax authorities. This article provides information on the reasons for the adoption of the standard in 2014 and the practice of financial information exchange after 2017. Additionally, data on the effectiveness of exchange of information and critical analysis of some aspects of the functioning of the CRS were presented. The assumptions of the article are presented in terms of internationalization, given the fact that counteracting dishonest taxpayers has shifted from the national to the international level in recent years.

Эволюция валютного регулирования и контроля в России и перспектива продолжения либерализации валютного законодательства

After thirty years of continuous evolution, following the conceptual reform in 2004–2007 and subsequent easing, the Russian system of FX controls has come to a point where many administrative barriers have already been removed, the residents’ duties to repatriate proceeds from export of goods, except for FX proceeds from raw materials, are being cancelled, and bureaucratic procedures have been streamlined. At this point, the question is raised of what other steps in the field of liberalization of FX controls can be taken in the first place to achieve the ever more urgent goal of developing nonresource exports. The article analyzes the purposes of regulation, describes the evolution of the system, examines experts’ opinions regarding the course of reforms, and concludes with a view of the rational prospects for reforming the system. The central problem is the continuation and expansion of the automatic exchange of financial information between the tax authorities of Russia and foreign countries, which, in particular, would help limit fiscal risks when eliminating the remaining residents’ repatriation duties.

Organizational aspects of formation and submission of financial reporting in iXBRL format

Methods. The methodological basis of the study was the methods of analysis and synthesis – for the actualization of the main problems of the formation and submission of financial statements by business entities in the iXBRL format, the development of measures for the organization and conduct of internal audits of the generation of financial statements; historical and logical – when establishing the theoretical and normative foundations of the formation of financial statements; general and specific – when clarifying the components of the accounting policy of a business entity that prepares reports according to IFRS; systems approach – for the development of a step-by-step algorithm for the formation and submission of financial statements in the iXBRL format. Results. The article summarizes the theoretical and normative approaches to financial statement formation according to international standards for the effective exchange of financial information between different users. The components of the accounting policy of the business entity that prepares the reporting under IFRS have been formed. The composition of the financial reporting package of the business entity in the format of modern, flexible iXBRL technology has been determined. A step-by-step algorithm for forming and submitting financial statements in the iXBRL format prepared according to the IFRS process is proposed. There is outlined the direction of harmonization of the procedure for generating financial reports in the iXBRL format through the development of digital competencies of the accounting staff of the economic entity. Novelty. There are summarized the theoretical-normative and organizational foundations of the formation and submission of financial statements by business entities in the iXBRL format according to IFRS in the conditions of the European integration of the Ukrainian economy and the implementation of European legislation. Practical value. The study results are of an applied nature, as they allow obtaining an up-todate approach to the formation and submission of financial statements by business entities in the iXBRL format, which opens up modern opportunities for the effective exchange of financial information between different users.

Model of financial mechanism of stimulation of the reproduction process on the example of national projects implementation

The article presents the study of the problem of stimulating the Russia federal budget financing. The authors study innovation in taxation legislation including deoffshorization, the stages of its implementation, structure, current state and the results achieved. The topicality of studying this government approved activity is justified by significant financial outflow abroad. The national measures of fighting offshores are adduced in the article. Russia has joined international conventions on cooperation in taxation and fight against tax evasion. Moreover, in 2018 the country implemented the OECD system for mutual data exchange on foreign accounts, property and assets, that is, the standard of automated exchange of financial information called the Common Reporting Standard. The analysis conducted by the authors proves the hypothesis about shifting priorities of private companies towards huge dividend payments instead of investments in development of their own business and the whole industry. Big private companies being the core of economy are interested in preserving offshore locations with preferential taxation terms. Major threats the government faced were connected with loss of control over strategic assets in fuel and energy complex, metallurgy, machine engineering, defense production and, consequently, with failure to administer the economy. In this situation, the government faces a complicated task of controlling the use of offshore locations and present alternative and perspective options for private business. The initiated deoffshorization should become the starting point for the development of different financial instruments and mechanisms on stimulating investment in federal budget. The authors study the probable tool aimed at maintaining the process of additional financing of the state budget. Modernization of reporting and introduction of additional progressive allowances to the existing taxation can become such an instrument.

Legal Consequences of Opening Access to Financial Information of Customer Data for Tax Purposes Based on Indonesian Law

The enactment of Law Number 9 of 2017 concerning Government Regulation in Lieu of Law Number 1 of 2017 concerning Access to Financial Information for Tax Purposes Being this law is the first step in tax reform to improve the taxpayer database and also transparency of the tax potential that exists in each taxpayer. This law is the commitment of the State of Indonesia to participate in the G20 international agreements in the field of taxation in order to realize the Automatic Exchange of Financial Account Information (AEOI) financial information exchange and is expected to help strengthen Indonesia's tax system towards a more modern direction and increase awareness of mandatory taxes in fulfilling their tax obligations. The research method is normative juridical, which is descriptive analytical with data collection techniques from library research. Data analysis was carried out using a qualitative normative method, where this research was classified as normative which was complemented by a comparison of secondary data research. From the results of the study, it is known that the legal consequences of opening access to financial information on customer data after the issuance of Law no. 9 of 2017 concerning Stipulation of Government Regulation in Lieu of Law No. 1 of 2017 concerning Access to Financial Information for Tax Purposes Being a law is for the tax party, namely the Directorate General of Taxes, that they no longer need to bother but can directly request data from the bank. Through this regulation, the Directorate General of Taxes of the Ministry of Finance has the flexibility to access financial information of customers who are taxpayers. Then, the legal consequences for banks are required to provide information to the Director General of Taxes, either through electronic/non-electronic or through other access and exchange of information. Banks or Financial Services Institutions that do not submit, do not carry out the procedures for this provision will have legal consequences for tax authorities, for banks and for customers

ОСНОВНЫЕ АСПЕКТЫ ТРАНСФОРМАЦИИ НАЦИОНАЛЬНОЙ ОТЧЕТНОСТИ В СООТВЕТСТВИИ С МЕЖДУНАРОДНЫМИ СТАНДАРТАМИ ФИНАНСОВОЙ ОТЧЕТНОСТИ

This article discusses the main aspects of the transformation of national reporting in accordance with international financial reporting standards. In modern conditions, an important component for attracting investment to Russian enterprises is the transition to international financial reporting standards( IFRS), since during the period of overcoming the consequences of the economic crisis, Russian enterprises are experiencing an acute need for investment resources. However, investors place increased demands on the object of investment, namely, on Russian commercial enterprises. The financial statements prepared in the IFRS format enjoy the confidence of investors and creditors. Therefore, there is an urgent need to improve the practice of applying IFRS as a tool for the international exchange of financial information. It is worth noting that companies that prepare financial statements in the IFRS format are more competitive in the international market.

Method of Performance Analysis of Time-Critical Applications Using DB-Nets

These days, most of time-critical business processes are performed using computer technologies. As an example, one can consider financial processes including trading on stock exchanges powered by electronic communication protocols such as the Financial Information eXchange (FIX) Protocol. One of the main challenges emerging with such processes concerns maintaining the best possible performance since any unspecified delay may cause a large financial loss or other damage. Therefore, performance analysis of time-critical systems and applications is required. In the current work, we develop a novel method for a performance analysis of time-critical applications based on the db-net formalism, which combines the ability of colored Petri nets to model a system control flow with the ability to model relational database states. This method allows to conduct a performance analysis for time-critical applications that work as transactional systems and have log messages which can be represented in the form of table records in a relational database. One of such applications is a FIX protocol-based trading communication system. This system is used in the work to demonstrate applicability of the proposed method for time-critical systems performance analysis. However, there are plenty of similar systems existing for different domains, and the method can also be applied for a performance analysis of these systems. The software prototype is developed for testing and demonstrating abilities of the method. This software prototype is based on an extension of Renew software tool, which is a reference net simulator. The testing input for the software prototype includes a test log with FIX messages, provided by a software developer of testing solutions for one of the global stock exchanges. An application of the method for quantitative analysis of maximum acceptable delay violations is presented. The developed method allows to conduct a performance analysis as a part of conformance checking of a considered system. The method can be used in further research in this domain as well as in testing the performance of real time-critical software systems.

НАЛОГОВЫЕ ИНСТРУМЕНТЫ ДЕОФШОРИЗАЦИИ РОССИЙСКОЙ ЭКОНОМИКИ НА СОВРЕМЕННОМ ЭТАПЕ

The article highlights the main trends in the policy of de-offshorization of the Russian economy at the present stage on the basis of a comprehensive analysis of the legal prescrip-tions of international legal acts and national tax legislation The article formulates and describes the system of tax and legal instruments for de-offshorization in the context of the development of the best national and foreign practices, as well as the theoretical views of scientists and is considering the problems and prospects of the implementation of each tool. The shortcomings and contradictions of regulations in the studied area are highlighted. The goals of state policy in the area of economic security of the Russian Federation in-clude the following: strengthening economic sovereignty, ensuring economic progress and increasing sustainability of the economy to external and internal threats. In the context of the above mentioned goals, the state defines for itself the main tasks, calculated for a long period of time, which are designed to facilitate the process of de-offshorization. The essence of de-offshorization should be comprehensively considered from the stand-point of international and domestic legislative regulation. The experience of generalizing the best foreign and national practices, theoretical views of scientists allows us to highlight the most effective set of financial and legal instruments for implementing the mechanism of de-offshorization of the Russian economy at the present stage. It seems possible to group the main trends in tax regulation in this area as follows. First, the modernization of some intergovernmental agreements and conventions of the foreign eco-nomic nature on the double tax avoidance on income and capital and on the prevention of tax evasion on income. In the second place, amendments to the domestic tax legislation in terms of determining CFC profits, simplifying tax administration, determining the procedure for conducting mutual agreement procedures, limiting mechanisms for reducing the tax burden (simplified limitation of benefits, S-LOB). Third, the expansion of the international institution for the international automatic exchange of financial information. This method of interaction between tax administrations of states allows to achieve the goal of reducing the shadow economy by increasing the transparency of infor-mation on taxpayers' accounts with minimal time, material and organizational costs. The de-offshorization policy is currently yielding the expected results. The main achievements in this field include the digitalization of information data about the taxpayer, as well as the creation of a legal, organizational, technical and methodological platform for the automatic exchange of such information between public authorities within the country and with opposing states.

Удосконалення податкового контролю в Україні на основі реалізації інструментів плану beps та автоматичного обміну інформацією

The article is devoted to substantiating the need to develop and strengthening the competencies and capabilities of tax services to identify and stop tax evasion in the global economic space characterized by the use of aggressive tax planning schemes related to the taxation of cross-border companies. The aim of the article is to determine the procedures and consequences of the introduction in Ukraine of the standard of automatic exchange of information for tax purposes, the advantages of which are its potential to curb significant tax evasion offshore. Research methods: methods used in this research goes as following: comparative analysis, systematic analysis, cognitive-analytical, data base analysis etc. It is established that the exchange of information between the tax authorities of different countries is the most important among the international instruments to combat cross-border tax evasion schemes, and the main international tool for cooperation in overcoming the asymmetry of tax information is the introduction of a standard for automatic exchange of information for tax purposes. Emphasis is placed on the parameters set by the CRS standard for the identification and exchange of information and the steps that need to be taken to implement it in Ukraine. Research methods: methods used in this research goes as following: comparative analysis, systematic analysis, cognitive-analytical, data base analysis etc. Author arrives at the conclusion that the dates of establishment of the automatic taxation and financial information exchange system in Ukraine (in accordance with CRS standards) are not being followed sufficiently. In this paper author discusses the importance of systematic and methodological establishment of the automatic taxation and financial information exchange system in Ukraine (in accordance with CRS standards) as well as suggests the methods that would efficiently speed up the process of law enforcement project development in Ukraine as well as other normative acts.

Exceptions of banking secrets for the interest of taxes in Indonesia (a comparison of the post-birth of access law to financial information)

Act Number 7 of 1992 as amended by Act Number 10 of 1998 concerning Banking and several related rules already regulates the exclusion of banking secrets, especially for tax purposes. However, the existing mechanism has not been able to accommodate the exchange of financial information within the framework of the Automatic Exchange of Information (AEOI). Then the Financial Information Access Act was formulated which regulates the automatic exchange of financial information that has never been known before. The problems discussed in this study, how are the exceptions of bank secrets for tax purposes that have been carried out in Indonesia and how are bank secrets exceptions regulated in the Financial Information Access Act. The research method used is a normative juridical method with a descriptive-analytical research approach. The results of the study found that the exception of bank secrets has long been known in Indonesia but is still limited by a convoluted bureaucracy. Whereas in the Financial Information Access Act, exceptions take place automatically but there are sanctions for those who misuse information.

Pengecualian Rahasia Perbankan untuk Kepentingan Perpajakan di Indonesia

&lt;table width="589" border="0" cellspacing="0" cellpadding="0"&gt;&lt;tbody&gt;&lt;tr&gt;&lt;td valign="top" width="16"&gt;&lt;p&gt;&lt;em&gt; &lt;/em&gt;&lt;/p&gt;&lt;/td&gt;&lt;td valign="top" width="403"&gt;&lt;p&gt;&lt;em&gt;Act Number 7 of 1992 as amended by Act Number 10 of 1998 concerning Banking and several related rules already regulated the exclusion of bank secrecy, especially for tax purposes. However, the existing mechanism has not been able to accommodate the exchange of financial information within the framework of the Automatic Exchange of Information (AEOI). Then the Financial Information Access Act was formulated which regulates the automatic exchange of financial information that has never been known before. The problems discussed in this study are how the exclusion of bank secrecy are for tax purposes that have been carried out in Indonesia and how the exclusion of bank secrecy are regulated in the Financial Information Access Act. The research method used is a normative juridical method with a descriptive analytical research approach. The results of the study found that the exclusion of bank secrecy has long been known in Indonesia but is still limited by a convoluted bureaucracy. Whereas in the Financial Information Access Act, exclusion take place automatically but there are sanctions for those who misuse information.&lt;/em&gt;&lt;/p&gt;&lt;p&gt;&lt;strong&gt;&lt;em&gt;Keywords:&lt;/em&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;em&gt;Bank Secrecy; Access to Financial Information; Tax.&lt;/em&gt;&lt;/p&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/tbody&gt;&lt;/table&gt;

Автоматический обмен налоговой информацией, как способ международного налогового контроля

По данным Центрального банка Российской Федерации, объёмы оттока капитала за рубеж за первые восемь месяцев 2018 года составили 26,5 миллиардов долларов США. Это примерно втрое выше, чем за аналогичный период прошлого года. Поскольку данная ситуация имеет характер прогрессивности, проблема вывода капитала за рубеж плюс сопряжённая с этим проблема борьбы с экономическими преступлениями, стоит категорически остро и нуждается в ее разрешении на государственном уровне. Именно эта проблемная зона привела к заключению Многостороннего соглашения ОЭСР о сотрудничестве между компетентными органами по вопросам автоматического обмена информацией, которое является частью Стандарта ОЭСР по автоматическому обмену финансовой информацией. В данной статье рассмотрены основные принципы функционирования взаимного обмена информацией, озвучен перечень лиц, которые несут обязанность по предоставлению налоговой информации, указан ее объем, который условно можно разделить на две категории в зависимости от отнесения реального владельца банковского счета к числу физических или юридических лиц. Отдельное внимание уделено нарастающей проблеме связанной с наличием противоречия принципа неразглашения персональных данных и наличием банковской, коммерческой тайны с принципом открытости банковских сведений, на котором строится автоматический обмен финансовой информацией. По результатам проведённого анализа автором сделан вывод, что международно-правовые акты, регламентирующие порядок автоматического обмена информации, привели к усложнению деятельности предпринимательского сектора, а также позволили сделать процедуру передачи информации о счетах более прозрачной, сокращая возможности бизнеса уклониться от налогов путём легализации незаконных доходов.

PARTICIPATION OF UKRAINE IN AN INTERNATIONAL SYSTEM OF TAXATION AND FINANCIAL INFORMATION EXCHANGE (IN ACCORDANCE WITH CRS STANDARDS) IN THE CONTEXT OF CRIMINAL RESPONSIBILITY FOR THE AVOIDANCE OF TAX PAYMENTS IN UKRAINE

Purpose: system of automatic exchange of financial information (AEOI) was established in 2014 as a universal mechanism of financial information exchange between the countries, participants in abovementioned system. The process of becoming a member of AEOI gives the taxation organizations of the countries-participants of the system an opportunity to obtain financial information about their tax residents, who are accountable for having bank accounts abroad. As a result of abovementioned system, the falsification and hiding of real income of the citizens abroad becomes impossible, thus it becomes easier for the country to trace the evidence of tax payment avoidance. The aim of the work is to research the process of automatic taxation and financial information exchange system establishment in Ukraine (in accordance with CRS standards). Research methods: methods used in this research goes as following: comparative-law analysis, systematic analysis, cognitive-analytical, data base analysis etc. Results: author arrives at the conclusion that the dates of establishment of the automatic taxation and financial information exchange system in Ukraine (in accordance with CRS standards) in Ukraine are not being followed sufficiently. Discussion: in this paper author discusses the importance of systematic and methodological establishment of the automatic taxation and financial information exchange system in Ukraine (in accordance with CRS standards) as well as suggests the methods that would efficiently speed up the process of law enforcement project development in Ukraine as well as other normative-law acts.