Russia chooses Georgian model of capital amnesty. According to Mr. Alexei Kudrin, Minister of the Finance of the Russian Federation, the amnesty shall be applied not only to funds as it was initially planned, but also to the property acquired prior to declaration of amnesty.   From January 1, 2006, in accordance with the initial draft project on individuals’ capital amnesty prepared by the Russian Government, the citizens of Russia should declare their incomes gained before January 1, 2005 and deposit their nonregistered funds in commercial banks of Russia and pay 13 % income tax on these funds. According to the final statement made by the Russian Finance Minister Alexei Kudrin the property acquired in previous years together with cash incomes may be subject to the amnesty as it was done in Georgia in the process of legalization.   The declaration-legalization process of the concealed property in Georgia has began since 2005. From May 1 to August 1 of the current year, according to the respective law, any individual or legal entity was able  to declare-legalize his/her concealed property (income) by making  term or saving deposits in local or foreign currency or by transferring funds from abroad to commercial banks of Georgia. Furthermore, the legal entities are completely released from all the old tax liabilities pursuant to the Law adopted in Georgia; in case of declaring the income in the Tax Authorities an individual has to pay only 1% of the declared money or property cost.   The exemptions provided for in the Law of Georgia on “Preventing the Legalization   of Illegal Incomes” are in force till December 31, 2005.