MOSCOW -- A plan proposed by the Russian government to grant a capital amnesty aimed at encouraging billions of dollars to return to Russia is in doubt because of Kremlin opposition, the *****Vedemosti***** daily reported Tuesday.

The influential business newspaper a month ago reported that a new law was being considered that would legalize the capital while forcing Russians to pay a one-off 13-percent income tax on their holdings.

But the scheme, proposed by Prime Minister Mikhail Kasyanov's government, has run into strong resistance from within the presidential administration and Finance Ministry, AFP quoted Vedemosti as saying.

According to government estimates, $300 billion (300 billion euros) have been illegally taken out of the country over the last 12 years and the measure could see about one-third of that sum return to Russia.

The head of the Kremlin's Economic Department, Anton Danilov-Danilyan, however, told ****Vedemosti**** that the presidency would not back the plan because it rewarded illegal accumulation of capital and would worsen Russia's reputation for money-laundering.

"There would be no benefits from this but severe negative consequences," he said, describing such a measure as appropriate only for transition economies.

"A tax amnesty would ruin our relationship not only with the FATF (Financial Action Task Force) but with the entire civilized world," added Danilov-Danilyan.

"Those who want to bring money back to Russia already do it by investing in the Russian economy," the Kremlin official concluded.

Russia remains on a blacklist drawn up in 2000 by the multinational FATF of countries which are deemed to be inadequately fighting money-laundering.

Russia was among 15 nations retained on the FATF blacklist during the task force's meeting in Paris in June.

A Finance Ministry source also indicated opposition to the proposed capital amnesty, complaining that it gave no incentive to law abiding taxpayers.

"If we forgive citizens who broke the law, how do we explain this to those who paid their taxes honestly?" the ministry source told ****Vedemosti*****.

The plan would require people and businesses to move 25 percent of their assets into Russian banks but allow them to keep the rest of their capital abroad.

The billions of dollars siphoned off from Russia into offshore accounts have the potential to provide a huge boost to cash-starved Russian business and industry should they be repatriated.

But analysts warn that there will be no massive inflow of investment until the economy improves and the government pushes ahead with structural reforms such as overhauling the banking sector and establishing a rule of law.

"The true priority for the Putin administration must be to improve the investment climate sufficiently to attract investment into the country from all potential pools of overseas capital, whether Russian or foreign," said UFG Brokerage in a research note.