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.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Anna Baydakova

Anna Baydakova was CoinDesk's investigative reporter with a special focus on Eastern Europe and Russia. Anna owns BTC and an NFT.

Follow @baidakova on Twitter

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.