Exchange and provision of information in the field of tax administration and prevention of tax evasion

Authors

DOI:

https://doi.org/10.54201/iajas.v3i1.28

Keywords:

banking secrecy, supervisory authority, tax administration, automatic exchange of tax information

Abstract

The exchange and provision of information on taxpayers generally pursue different objectives. According to the provisions of tax law, the main purpose of obtaining information on taxpayers was to implement effective tax administration. Subsequently, other tasks have been added to this objective, including prevention of tax evasion, tax avoidance and related tax crime detection and investigation. The provision and exchange of information between the tax administration authorities and other legal entities, especially the national supervisory authority or national central bank, is subject to a strict regulatory regime, based on an explicit legal mandate to utilise the information. The reason is that the subject of the provision and exchange is often information that has a special secrecy protected by the law, such as banking secrecy, professional secrecy or protected information regarding securities. The authors identify and analyse the legal regime for providing information for the purposes mentioned, especially in the conditions of the Slovak Republic. The legal regime in the Slovak Republic is also more or less affected by legal acts adopted at global (OECD) level and EU level, so the authors take into account, to some extent, these legal acts when dealing with the automatic exchange of tax information between the tax administration of EU and non-EU member states. In this context, the authors differentiate according to whether the provision of information takes place under vertical or horizontal institutional relations. Following that, the aim of the paper is to identify how the related authorities/persons interact in horizontal institutional relations and vertical institutional relations.

Author Biographies

  • Ľubomír Čunderlík, Comenius University, Bratislava

    Full Professor, Comenius University Bratislava, Faculty of Law, Department of Financial Law, Bratislava, Slovakia

  • Andrea Szakács, Comenius University, Bratislava

    Assistant Professor, Comenius University Bratislava, Faculty of Law, Department of Financial Law, Bratislava,
    Slovakia

References

Babčák, V. et al. (2018). Daňové úniky a daňové podvody a právne možnosti ich predchádzania (inštitútmi daňového, obchodného a trestného práva) [Tax evasion and tax fraud and legal possibilities of their prevention (tax, commercial and criminal law)]. Univerzita Pavla Jozefa Šafárika v Košiciach. Online: https://www.upjs.sk/public/media/17624/zbornik_62.pdf

Babčák, V. (2022). Dane a daňové právo na Slovensku (teória a legislatíva) [Taxes and tax law in Slovakia (theory and legislation)]. EPOS.

Béra, R. (2021). Global Tax Alert: French Supreme Administrative Court requests preliminary ruling from ECJ. DLA Piper. Online: https://bit.ly/3L64ly3

Daudrikh, Y. (2020). Implementation of V. AML Directive into national legislation in the territory of the Slovak republic. In M. Bezpartochny, V. Riashchenko, & N. Linde (Eds.), Strategies, models and technologies of economic systems management in the context of international economic integration. Scientific monograph (pp. 384–400). Institute of Economics of the Latvian Academy of Sciences. https://doi.org/10.5281/zenodo.4396286

Heseková, S. (2018). Požičiavanie formou peer to peer [Peer-to-peer Lending]. Justičná revue, 10(70), 1076–1085.

Koroncziová, A., Cibuľa, T., & Hlinka, T. (2019). Výmena informácií v oblasti daní v kontexte právneho poriadku SR [Exchange of information in the field of taxes in the context of Slovak law]. In V. Babčák et al. (Eds.), III. Slovensko-České dni daňového práva. Pozitívna a negatívna stimulácia štátu v oblasti zdaňovania [III. Slovak-Czech days of tax law. The positive and the negative stimulation of the state in the field of taxation] (pp. 207–220). Univerzita Pavla Jozefa Šafárika v Košiciach. https://doi.org/10.33542/DDP2019-819-4

Milučký, J., & Milučký, S. (2021). Správne trestanie na Slovensku a v európskom priestore - judikatúra [Administrative punishment in Slovakia and in Europe - case law]. Eurokódex.

Morawski, W. (2017). Urzędowe interpretacje prawa podatkowego a zwalczanie międzynarodowego unikania opodatkowania [Official interpretations of tax law and combating international tax avoidance]. In D. Gajewski (Ed.), Międzynarodowe unikanie opodatkowania (wybrane zagadnienia) [International Tax Avoidance (Selected Issues)] (pp. 239–245). C. H. Beck.

Morawski, W. (2020). Will the European Union put an end to the “golden age” of tax ruling? Acta Universitatis Carolinae - Iuridica, 3(66), 53–62. https://doi.org/10.14712/23366478.2020.25

OECD. (2017). Country-by-Country Reporting: Handbook on Effective Implementation, OECD, Paris. Online: https://bit.ly/3V570Nh

OECD. (2022). Crypto-Asset Reporting Framework and Amendments to the Common Reporting Standard [Public consultation document]. Online: https://bit.ly/3HanLkg

Rakovský, P. (2021). Daňový podvod a zneužitie práva v oblasti daní. Právne následky [Tax fraud and abuse of law in the field of taxation. Legal consequences]. C. H. Beck.

Šimonová, J. (2017). Daňové úniky v Slovenskej republike (možnosti ich eliminácie vybranými opatreniami) [Tax evasion in the Slovak Republic (possibilities of their elimination by selected measures)]. Wolters Kluwer.

Slezáková, A., Mikloš, P. et al. (2018). Zákon o dohľade nad finančným trhom. Komentár [Financial Market Supervision Act. Commentary]. Wolters Kluwer.

Vladár, V. (2015). The concept of private property in the social doctrine of the catholic church. Forum Iuris Europaeum, 2(3), 43–65.

Legal sources

Council Directive 77/799/EEC of 19 December 1977 concerning mutual assistance by the competent authorities of the Member States in the field of direct taxation.

Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments.

Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures.

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.

Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC.

Council Directive (EU) 2015/2376 of 8 December 2015 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation.

Council Directive (EU) 2016/881 of 25 May 2016 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation.

Council Directive (EU) 2016/1164 of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market.

Council Directive (EU) 2016/2258 of 6 December 2016 amending Directive 2011/16/EU as regards access to anti-money-laundering information by tax authorities.

Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements.

Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU.

Directive (EU) 2019/1153 of the European Parliament and of the Council of 20 June 2019 laying down rules facilitating the use of financial and other information for the prevention, detection, investigation or prosecution of certain criminal offenses, and repealing Council Decision 2000/642/JHA.

Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation.

Council Decision of 29 June 1998 on the consultation of the European Central Bank by national authorities regarding draft legislative provisions (98/415/EC). Online: https://bit.ly/3mTLxKJ

Opinion of the European Central Bank of 1 March 2022 on the establishment and operation of the central register of accounts (CON/2022/7). Online: https://bit.ly/3Ao15cq

Report from the Commission to the European Parliament and the Council on overview and assessment of the statistics and information on the automatic exchanges in the field of direct taxation, COM/2018/844 final.

Commission staff working document evaluation of the Council Directive 2011/16/EU on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC, SWD/2019/327 final.

Judgment of 20 March 2018, Luca Menci, C-524/15, EU:C:2018:197. Online: https://bit.ly/41SqNlh

Judgment of 8 December 2022, Orde van Vlaamse Balies and Others, C-694/20, EU:C:2022:963.

A and B v Norway App no 24130/11 and 29758/11 (ECtHR, 15 November 2016). Online: https://bit.ly/3V5bWBV

Foreign Account Tax Compliance Act.

Constitution of the Slovak Republic. Online: https://www.slov-lex.sk/static/pdf/1992/460/ZZ_1992_460_20210101.pdf

Act no. 566/1992 Coll. on the National Bank of Slovakia. Online: https://www.slov-lex.sk/static/pdf/1992/566/ZZ_1992_566_20190901.pdf

Act no. 483/2001 Coll. on Banks and on Amendments to Certain Acts. Online: https://www.slov-lex.sk/static/pdf/2001/483/ZZ_2001_483_20220330.pdf

Act no. 566/2001 Coll. on Securities and Investment Services and on Amendments to Certain Acts (Securities Act). Online: https://www.slov-lex.sk/static/pdf/2001/566/ZZ_2001_566_20220301.pdf

Act no. 747/2004 Coll. on Financial Market Supervision and on Amendments to Certain Acts. Online: https://www.slov-lex.sk/static/pdf/2004/747/ZZ_2004_747_20210626.pdf

Act no. 222/2004 Coll. on Value Added Tax. Online: https://www.slov-lex.sk/static/pdf/2004/222/ZZ_2004_222_20220101.pdf

Act no. 300/2005 Coll. Criminal Code. Online: https://www.slov-lex.sk/static/pdf/2005/300/ZZ_2005_300_20220101.pdf

Act no. 297/2008 Coll. on Protection Against Money Laundering and Terrorist Financing and on the Amendment to Certain Acts.

Act no. 466/2009 Coll. on International Assistance in the Recovery of Certain Financial Claims and on the Amendment of Certain Laws

Act no. 563/2009 Coll. on Tax Administration (Tax Procedure Code) and on Amendments to Certain Acts. Online: https://www.slov-lex.sk/static/pdf/2009/563/ZZ_2009_563_20220331.pdf

Act no. 203/2011 Coll. on Collective Investment. Online: https://www.slov-lex.sk/static/pdf/2011/203/ZZ_2011_203_20220101.pdf

Act no. 442/2012 Coll. on International Assistance and Cooperation in Tax Administration.

Act no. 39/2015 Coll. on Insurance and on Amendments to Certain Acts. Online: https://www.slov-lex.sk/static/pdf/2015/39/ZZ_2015_39_20220101.pdf

Act no. 359/2015 Coll. on the Automatic Exchange of Information on Financial Accounts for Tax Administration Purposes and Amending Certain Laws.

Act no. 267/2017 Coll., Amending Act no. 563/2009 Coll. on Tax Administration (Tax Procedure Code).

Act no. 373/2018 Coll., Amending Act no. 371/2014 Coll. on Resolving Crisis Situations in the Financial Market and on Amendments to Certain Acts, as amended, and Amending Certain Acts.

Act no. 123/2022 Coll. on the Central Register of Accounts and Amendments to Certain Acts.

Act no. 250/2022 Coll., Amending Act no. 442/2012 Coll. on International Assistance and Cooperation in Tax AdministrationNotification of the Ministry of Foreign Affairs and European Affairs of the Slovak Republic No. 461/2013 Coll.

Decree of the Ministry of Finance of the Slovak Republic no. 446/2015 Coll. Laying Down the Details of the Verification of Financial Accounts by Notifying Financial Institutions

Downloads

Published

2024-03-22

How to Cite

Exchange and provision of information in the field of tax administration and prevention of tax evasion. (2024). Institutiones Administrationis - Journal of Administrative Sciences, 3(1), 6-26. https://doi.org/10.54201/iajas.v3i1.28