UK says freezing tax cooperation with Russia and Belarus

The Union Jack flag is flown outside the Houses of Parliament, in London, Britain February 9, 2022. REUTERS/Tom NicholsonRegister now for FREE unlimited access to Reuters.comLONDON, March 17 (Reuters) – Britain said on Thursday it was suspending the exchange of tax information with Russia and Belarus in response to Moscow’s invasion of Ukraine.Countries from across the world have signed bilateral agreements with each other which allow their national tax authorities to request information from counterparts elsewhere to crack down on tax evasion and on companies trying to shift profits to a low-tax country.”The UK is freezing tax cooperation with Russia and Belarus by suspending all exchange of tax information with them,” Lucy Frazer, financial secretary to the Treasury, said in a written statement to parliament.”The suspension of tax information exchange will ensure the UK is not supplying Russia and Belarus with information that could lead to an increased tax benefit or yield for them.”Frazer said the suspension, which comes into effect on Thursday, was not expected to materially impact Britain’s ability to address tax non-compliance as it continues to exchange tax information with its extensive treaty network.Register now for FREE unlimited access to Reuters.comReporting by Kylie MacLellan and Huw Jones; editing by William James and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.