Russia's Super Rich Start to Come Clean As Tax Police Dig Deep

Russia's top earner took home a 95.4bn roubles (£1.8bn) last year, but is keeping his identity secret, no doubt mindful of the apparent backlash against the wealthy.

Tax ministry officials said it was the first time a Russian had declared an income of more than $1bn. Income tax at the flat rate of 13% will cost him £234m.

The second highest declaration, 11.5bn roubles, was made in the Chukotka region, where the Chelsea football club owner, Roman Abramovich, is governor and has set up a favourable tax system.

A spokesman declined to say if it was his declaration.

With Russia's richest man, Mikhail Khodorkovsky, on trial for tax evasion and the millions of poor eager to see the rest of the elite in the same position, wealth has become a double-edged sword in Russia.

The tax ministry's returns show a general expansion in declared earnings and an 80% rise in the number declaring incomes over 9bn roubles (£169m).

Forbes magazine recently reported that Moscow had more billionaires than any other city in the world: 33.

Analysts said the increase in declarations might reflect the zeal of the tax police, who have turned their attention on everyone from Mr Khodorkovsky to English-language teachers working for the British Council. And they speculated about the identity of the top taxpayer.

Roland Nash, chief strategist at Renaissance Capital, said: "Mikhail Fridman [owner of Alfa-Group] has always had the highest personal tax bill in the past, so I would guess it's him. But Abramovich has sold quite a lot this year, as has [the aluminium tycoon Oleg] Deripasko."

He said the declaration might not represent the individual's entire earnings. "The norm is to declare what you can get away with. But this guy must think he can simply get away with a lot less than before."

He said the prosecution of Mr Khodorkovsky, and the way he had made his fortune during the dubious privatisations of the 90s, had made Russia's hyper-rich nervous.

"Anybody who has serious money in Russia made it through the privatisations ... and must be feeling pretty under threat at the moment."

The media reported that the returns showed 11,000 people declaring over a million roubles last year. But 1m roubles is only £20,000.