The governments of Italy and Russia have already a week to use Tax Treaty Protocol

05.06.2012 On 1 June 2012, the amending protocol, signed on 13 June 2009, to the Italy–Russia Income and Capital Tax Treaty (1996) entered into force.

Expert’s opinion

It is assumed that agreements on avoidance of double taxation really and truly provide benefits to taxpayers. It is obvious advantages: pay taxes only once. Exchange of tax information - by no means an advantage for simple taxpayers! It is some sort of an oxymoron.

Nevertheless, there is a condition in the agreement that obliges contracting states to use all available capabilities to gather information about taxpayers and paid taxes. Even if the State in which this information requests, doesn’t need it. This is certainly an advantage. And just for fiscals. Now there is a great opportunity to shove a lot of work to colleagues in other states.

All we know or have heard the term: “Italian strike”. More recently, it was a strike, which was carried out by opposition deputies of the Duma of the Russian Federation during the adoption of the law about rallies.

It is expected that the tax authorities of Italy and Russia will find a common language. It remains only to wish, as a private service employees (especially the Russian of course) - often go on business trips in Rome, Venice, Naples, the beaches of Sicily and the Adriatic.

Coming soon - a week since the beginning of the summer (June 1): "The governments of Italy and Russia have possibilities to use this Protocol about tax information exchange".

On the basis: http://www.minfin.ru/ru/

Yaroslav Lomakin ( Managing Partner of Honest & Bright Company Ltd. )