Automatic exchange of tax information: initiation, implementation and guidelines in Bulgarian context
-
DOIhttp://dx.doi.org/10.21511/ppm.15(si).2017.04
-
Article InfoVolume 15 2017, Issue #2 (cont. 3), pp. 509-516
- Cited by
- 1275 Views
-
517 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
The paper aims to introduce and clarify automatic exchange of tax information as a global and European Union initiative in order to curb tax evasion via cross-border tax avoidance, along with aggressive tax competition. It investigates the role of Organization for Economic Cooperation and Development (OECD) which developed Common Reporting Standard (CRS) and endorsed it in 2014. CRS is a framework for automatic exchange of tax information with the purpose to promote cooperation among various jurisdictions. For EU Member States, CRS is transposed by the amended EU Directive on Administrative Cooperation (DAC2). Bulgaria as a member state has transposed the Directive in the national law.
This study examined automatic exchange of tax information (AETI) from Bulgarian perspective – historic development, legal framework, responsible and competent authorities and application of DAC2 and expectations for newly approved DAC3.
In the study, Bulgarian financial institutions (banks) are examined, implementation status and how the challenge of AETI, including client information and data protection, are addressed. Primary data for banks are collected from publicly available sources (website of the respective bank), as company websites of top 5 Bulgarian banks were examined for information related to automatic exchange of financial information/tax information.
Results show that major Bulgarian banks, within First Group in terms of assets, are initiating the process, internal due diligence and preparation for the new reporting requirements.
General conclusion is that currently there are some critical issues to be addressed, new DAC3 might introduce higher challenges, as practical guidance is the solution.
-
JEL Classification (Paper profile tab)M41, M48, M49, H20, H25, H26
-
References26
-
Tables0
-
Figures0
-
- Arkiomaa, M. (2016). The Differences in the Automatic Exchange of Financial Account Information in Tax Matters between FATCA and CRS.
- Bulgarian National Bank, Bank Supervision, Credit Institutions (Banking Sector). (2016).
- Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments.
- Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC.
- Council Directive 2014/107/EU of 9 December 2014 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation.
- Deloitte Bulgaria, Tax Newsletter (2015).
- DSK BANK (July 27, 2016).
- DSK BANK (July 27, 2016).
- DSK BANK (July 27, 2016).
- DSK BANK (July 27, 2016).
- Europen Commission, New framework in the EU for Administrative Cooperation (August 22, 2016).
- European Commission, Directorate-General for Taxation and Customs Union (2015) Implementation of Directive 2014/107/EU – automatic exchange of financial account information First Report of the Commission AEFI expert group on the implementation of Directive 2014/107/EU for automatic exchange of financial account information FIBank. (2016).
- Knobel, A., & Meinzer, M. (2014). Automatic Exchange of Information: An Opportunity for Developing Countries to Tackle Tax Evasion and Corruption. Tax Justice Network.
- Knobel, A., Olier, C., Giegold, S., Meinzer, M. (2016). The Role of the U.S. as a Tax Haven Implications for Europe, A Study Commissioned by the Greens/EFA Group in the European Parliament.
- KPMG, Automatic Exchange of Information, The Common Reporting Standard, How financial institutions can adapt to new global standards. (2015).
- KPMG Bulgaria, Tax Analysis,
- National Revenue Agency. (2016).
- National Revenue Agency, Automatic exchange of financial information. (August 6, 2016).
- Organisation for Economic Co-Operation and Development (OECD) Common Reporting Standard (CRS). (2016).
- Organisation for Economic Co-Operation and Development 2012: Automatic Exchange of Information. What it is, How it Works, Benefits, What Remains to be Done, Paris. (2016).
- Organisation for Economic Co-Operation and Development (OECD) Common Reporting Standard (CRS). (2016).
- Postbank. (2016).
- Tax-Insurance Procedure Code, amend. SG. 94/ 04 Dec. 2015, in force as of January 1, 2016
- UBB (2016).
- UBB (2016).
- Urinov, V. (2015). Developing Country Perspectives on Automatic Exchange of Tax Information. Law, Social Justice & Global Development Journal, 1.
