The Russian Federation became a party to international convention on combating tax evasion

Signing of the above convention will allow the Russian Federation to more effectively prevent attempts to evade paying taxes on profits by applying provisions of international treaty to violators

Currently, the Russian Federation is among 67 states/jurisdictions that are participants in the multilateral convention, which, in turn, will ensure the application of international treaties concerning prevention of the withdrawal of profits from taxation. In addition, this convention aims at eradicating the endamagement of the tax base.

The Ministry of Finance stressed that: "The need for such document results from the fact that uniform application by all participants of certain standards and measures developed during the implementation of this plan (combating hybrid schemes for minimizing taxation, abuse of the law of international treaties, counteracting the artificial avoidance of permanent representation status, dispute resolution) would require simultaneous amendment of more than 3,000 bilateral tax agreements".

It is possible to modify previously concluded international treaties with the subsequent application of those taking into account new norms and standards with the help of new convention. Entry of multilateral convention into force in the Russian Federation will take place after ratification.