The Ministry of Finance of the Czech Republic published an OECD standard for the exchange of information provided by financial institutions to tax authorities. They describe the requirements for financial institutions in a broader sense (not just banks, but also brokers, collective investment schemes and insurance companies), which target a certain level of due diligence on clients and that also may help financial authorities to combat large-scale tax evasion.
The new standard applies to the automatic exchange of information, which, if used properly, can contribute to improvements in tax collection. For taxpayers it will become more difficult to hide money in accounts abroad without being subjected to tax claims in their tax residences. Financial authorities should learn about the income of its residents, deposited abroad through the automatic exchange of information on financial accounts.
The paper prescribes what information each notifying financial institution should find out about accounts with sufficient connection to tax duty abroad. Financial institutions have an obligation to submit the relevant information periodically to the tax authority in the country where they operate.
Contact:
Jana Bašeová
Relationship Manager
Global Securities Services Czech Republic
jana.baseova@unicreditgroup.cz