UK freezes tax information exchange with Belarus and Russia

March 18, BPN. The United Kingdom is suspending tax information exchanges with Belarus and Russia “as part of continued efforts to inflict economic pain on President Putin’s regime,” the UK Treasury announced.

The UK exchanges tax information with Russia under the Convention on Mutual Administrative Assistance in Tax Matters, while Russia and Belarus do this under bilateral Double Tax Agreements.

According to Rishi Sunak, the UK chancellor of the Exchequer, the decision would block the flow of information that could increase tax benefits or returns for the Putin’s regime.

Lucy Fraser, financial secretary to the Treasury, noted that the UK stands “shoulder to shoulder with the people of Ukraine and wants to do everything possible to support them.”

She added that as the UK sought to “to put Vladimir Putin’s regime under decisive economic pressure, it would not be right to continue to exchange tax information with Russia and Belarus.”

“Along with the other economic measures we’ve already taken, this step will help starve Putin of the resources he needs to carry out his barbaric campaign of violence,” Fraser stressed.

The decision, effective as of March 17, means that Russia would no longer receive information under all previous tax information-sharing agreements.

On February 24, Russia started a war against Ukraine, officially called a “special military operation.” Authorities in Minsk deny the Belarusian army’s involvement in combat operations on the Russian side. At the same time, Russian army uses Belarus for strikes on Ukraine. Moreover, captured Russian soldiers confessed that they had entered Ukraine from Belarus. 

In connection with the act of military
aggression, democratic countries imposed unprecedented sanctions on Russia,
while significant restrictive measures, albeit on a smaller scale, were
introduced against Belarus, with its authorities considered to be Moscow’s
accomplices.