Current Issue with Car Sales Fraud in Russia
Import Fraud Schemes in Light Car Imports Discussed by FTS Head
A growing concern in Russia's automotive industry involves car sales fraud, particularly by intermediary companies. According to Valeriy Pikalyev, the head of the Federal Tax Service (FTS), these companies are often engaging in commercial activity under the guise of personal use.
Recently, Pikalyev spoke about a case where a participant in a special operation was asked to pay an additional 600,000 rubles for a car, despite the intermediary's contract stating a recycling fee. The small print in the contract text sometimes indicates that a conscientious buyer incurs the obligation to pay the recycling fee.
This type of fraud has become widespread, with so-called individual entrepreneurs transporting cars multiple times over the course of a year as part of this scheme. The fraudulent intermediary companies are registering cars at a commercial coefficient, not for personal use, allowing them to avoid paying the recycling fee.
Enhanced Scrutiny by Traffic Police Officers
To combat this issue, traffic police officers are now required to pay attention to the period of ownership of a car. They will monitor to ensure that all commercial vehicles comply with the new recycling fees and regulations, potentially fining those who do not meet the requirements.
The legislation introduces new fines up to 600,000 rubles for various infractions, including failure to adhere to recycling fees and other traffic amendments. Police will conduct inspections to verify compliance with the new regulations, especially for vehicles being imported or used commercially.
Ongoing Efforts to Address the Issue
Despite the changes in legislation and the FTS's efforts to monitor the situation, there are still instances where cars are being registered without paying the recycling fee. The FTS is closely monitoring this situation, administering each second and subsequent car and collecting the recycling fee at the commercial rate.
Pikalyev noted that changes have been made to the legislation to address this issue. For example, even if a vehicle is used for personal purposes but has a large engine (over 3 liters), the owner must pay commercial recycling fees, which are significantly higher.
The ongoing issue of car sales fraud involving intermediaries underscores the importance of vigilance and compliance with the new regulations. By enforcing these changes and ensuring that all commercial vehicles comply with the new recycling fees, Russia aims to curb fraudulent activity and promote a fair and transparent automotive market.
- The growing issue in Russia's automotive industry, particularly car sales fraud by intermediary companies, has also extended to the finance sector, with some of these companies using deceptive methods to avoid paying commercial recycling fees.
- The fraudulent activities in the automotive industry have caught the attention of the general-news media, as well as the crime-and-justice department, due to the increased financial losses and potential harm to consumers.
- As the Russian government implements stricter regulations to combat car sales fraud, the transportation industry, including the imports and exports sectors, will likely experience changes and increased scrutiny by traffic police officers, enforcement agencies, and finance institutions.
