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Amendments to currency legislation – extension of limitation period for liability concerning currency offences and others
23.05.2016
This year changes to financial legislation were adopted. Federal Service for Fiscal and Budgetary Supervision, which executed the functions of financial supervision, was abolished, and its competences concerning currency control were transferred to the Federal Customs Service and Federal Tax Service (Decree of the President of Russia of 02.02.2016 No. 41). As a result, according to paragraph 2, part 2, art. 23 of the Federal Law of 10.12.2003 No. 173-ФЗ the Federal Customs Service and Federal Tax Service enforce the liability measures for violation of currency legislation.
Besides, the limitation period of liability for violations of tax legislation (part 1, art. 4.5 of Administrative Offences Code) was extended to 2 years by Federal Law of 05.04.2016 No. 89-ФЗ which entered into force on April 16, 2016.
In practice, a question arose regarding application of the amended limitation period for offences committed before its amendment. According to part 1 art. 54 of the Russian Constitution the law has no retroactive effect if it imposes or aggravates liability. Part 2, art. 1.7 of the Administrative Offences Code has an equivalent provision, according to which the law has no retroactive effect if it imposes or aggravates administrative liability for an administrative offence or aggravates the situation of a person in any other way.
This being said, from part 3.3 of paragraph 5 of the Decision of the Constitutional Court of Russia of 14.02.2013 No. 4-П it follows that extension of limitation period for liability is subject to the aforementioned provisions of the Constitution and Administrative Offences Code, and therefore does not apply to persons that committed administrative offences before the law entered into force (here: Federal Law of 05.04.2016 No. 89-ФЗ). However, it is necessary to take into account the exception set out in part 2, art. 4.5 of the Administrative Offences Code, according to which the limitation period for liability is calculated since the day of detection of the administrative offence if it is ongoing. The Plenum of the Supreme Court explained the specifics of this rule in part 14 of the Decision of 24.03.2005 No. 5. Therefore, the persons that committed currency offences before the law extending the limitation period for liability entered into force, are generally not subject to this new period.
It is also necessary to point out the amendments to part 5, art. 15.25 of the Administrative Offences Code (Federal Law of 15.02.2016 No. 30-ФЗ) which impose administrative penalty for non-residents who fail to perform the obligation to return to Russia the money paid to non-residents for goods not imported to Russia, works not executed, services not provided and in other cases. The amended article provides different fines: for breach of the term to repay money it constitutes 1/150 of the Central Bank discount rate for the money amount for each day of delay, and for non-repayment of money - from 75% to 100% of this money.
For information on amendments to currency legislation regarding filing cash flow reports by individuals see article “Obligation of submitting currency legislation reports for foreign nationals”.
This year changes to financial legislation were adopted. Federal Service for Fiscal and Budgetary Supervision, which executed the functions of financial supervision, was abolished, and its competences concerning currency control were transferred to the Federal Customs Service and Federal Tax Service (Decree of the President of Russia of 02.02.2016 No. 41). As a result, according to paragraph 2, part 2, art. 23 of the Federal Law of 10.12.2003 No. 173-ФЗ the Federal Customs Service and Federal Tax Service enforce the liability measures for violation of currency legislation. Besides, the limitation period of liability for violations of tax legislation (part 1, art. 4.5 of Administrative Offences Code) was extended to 2 years by Federal Law of 05.04.2016 No. 89-ФЗ which entered into force on April 16, 2016.
In practice, a question arose regarding application of the amended limitation period for offences committed before its amendment. According to part 1 art. 54 of the Russian Constitution the law has no retroactive effect if it imposes or aggravates liability. Part 2, art. 1.7 of the Administrative Offences Code has an equivalent provision, according to which the law has no retroactive effect if it imposes or aggravates administrative liability for an administrative offence or aggravates the situation of a person in any other way.
This being said, from part 3.3 of paragraph 5 of the Decision of the Constitutional Court of Russia of 14.02.2013 No. 4-П it follows that extension of limitation period for liability is subject to the aforementioned provisions of the Constitution and Administrative Offences Code, and therefore does not apply to persons that committed administrative offences before the law entered into force (here: Federal Law of 05.04.2016 No. 89-ФЗ). However, it is necessary to take into account the exception set out in part 2, art. 4.5 of the Administrative Offences Code, according to which the limitation period for liability is calculated since the day of detection of the administrative offence if it is ongoing. The Plenum of the Supreme Court explained the specifics of this rule in part 14 of the Decision of 24.03.2005 No. 5. Therefore, the persons that committed currency offences before the law extending the limitation period for liability entered into force, are generally not subject to this new period.
It is also necessary to point out the amendments to part 5, art. 15.25 of the Administrative Offences Code (Federal Law of 15.02.2016 No. 30-ФЗ) which impose administrative penalty for non-residents who fail to perform the obligation to return to Russia the money paid to non-residents for goods not imported to Russia, works not executed, services not provided and in other cases. The amended article provides different fines: for breach of the term to repay money it constitutes 1/150 of the Central Bank discount rate for the money amount for each day of delay, and for non-repayment of money - from 75% to 100% of this money.
For information on amendments to currency legislation regarding filing cash flow reports by individuals see article “Obligation of submitting currency legislation reports for foreign nationals”.
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