UK says freezing tax cooperation with Russia and Belarus

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.

(Reuters)