Facing a fine of over 3 billion rubles ($ 40 million) for violating currency legislation, and the risk of bankruptcy.

How to avoid a 100% penalty for currency transactions through a foreign bank account.
Situation:

The client opened an account with a foreign bank and conducted transactions totaling over 4 billion rubles ($ 53,3 million). However, the company failed to notify the tax authorities about the open account and the movement of funds through it.

According to Article 15.25 of the Administrative Violations Code, conducting currency transactions through a foreign bank account in the amount exceeding 100 million rubles ($ 1,3 million) in total within one year without notifying the tax authorities results in a penalty ranging from 75% to 100% of the total transaction amount.

In this situation, the account owner could face a penalty of approximately 3 billion rubles ($ 40 million), and go bankrupt. The period for holding liable under Article 15.25 of the Administrative Violations Code is 2 years. The client was in a panic as there was a significant risk that the tax authorities would take measures to hold them accountable and impose the penalty within that time frame.
Solution:

In this situation, our primary task was to assess the situation and identify the real risks of administrative liability. The assessment revealed that the risk in this case was at its maximum. We promptly took the following measures:
  • conducted document expertise and in-depth analysis of the situation;
  • assessed the actions of the tax authorities and other parties involved in the process;
  • developed a strategy and an action plan based on the results of similar cases.

As a result, a defense line was established, which minimized the risks of liability or, at the very least, significantly reduced the financial losses.
Result:

In cases of currency legislation violations, there are certain exceptions that do not result in liability. We were able to prove that this particular case fell under such exceptions. As a result, the client managed to avoid a 3 billion rubles ($ 40 million) penalty, and the resolution of the issue cost only a few million rubles.

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