Following its decision to unilaterally suspend its double taxation agreements, Russia has rejected the UK’s request to reverse the suspension, on grounds that it considers the economic measures imposed by the UK and others in response to Russia’s invasion of Ukraine a violation of its rights, and because many countries stopped exchanging financial information with Russia following the invasion.
The UK maintains that its DTC with Russia remains in force, which potentially means the UK remains obliged to exchange financial information under the agreement. Following Russia’s refusal to reinstate the agreement, it seems likely that the UK will stop any cooperation on the basis that the other party to the agreement is in material breach.
Following its decision to unilaterally suspend its double taxation agreements, Russia has rejected the UK’s request to reverse the suspension, on grounds that it considers the economic measures imposed by the UK and others in response to Russia’s invasion of Ukraine a violation of its rights, and because many countries stopped exchanging financial information with Russia following the invasion.
The UK maintains that its DTC with Russia remains in force, which potentially means the UK remains obliged to exchange financial information under the agreement. Following Russia’s refusal to reinstate the agreement, it seems likely that the UK will stop any cooperation on the basis that the other party to the agreement is in material breach.
