Putin offers 'amnesty' on offshore capital

Moscow, April. 25 (PTI): Russian President Vladimir Putin, today proposed a blanket amnesty for the return of offshore capital and suggested introduction of a simplified procedure in this regard for the benefit of a 'strong democratic' country.

"We must allow private individuals to declare their capitals (that have been amassed in previous years) in line with a simplified procedure," Putin declared in his State of the Nation address today before both Houses of Parliament.

The capital will be used for the economic development of a strong democratic Russia, a 'community of free people', he said.

According to the President, the procedure should stipulate the payment of 13 per cent tax and the deposit of declared amount in Russian bank accounts.

"Instead of lying in offshore accounts, the money must work for our economy," Putin told the joint session, also attended by Regional Governors, Judges of Supreme and Constitution Courts and religious leaders.

"We must create incentives enabling private individuals to channel their capitals into the economy," Putin said.

He asked the Government to set a three year cut-off date for privatisation deals from the current 10 years.

"Considering macro-economic and legal aspects, 10 years is too long and quite vague. This time period creates numerous uncertainties, causing the state and other parties to the process to become less vigilant," Putin stated adding, "three years is also quite long. This time period would enable the concerned parties and the state to settle accounts in court."

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