OECD Standard for Automatic Exchange of Financial Account Information and Council Directive 2014/107/EU
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On 15 July 2014 OECD Council adopted new single Standard for Automatic Exchange of Financial Account Information in Tax Matters (hereinafter: OECD Standard) to better fight tax evasion and ensure tax compliance.
The OECD Standard has been also endorsed by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes. In August 2014 it created a commitment process to enable its members to publicly commit to a timetable to implement the OECD Standard. The complete list of jurisdictions which committed to implement the OECD standard is published on the OECD website.
On 29 October 2014, Slovenia among other 51 jurisdictions, signed the first ever Multilateral Competent Authority Agreement to automatically exchange information under the OECD Standard. The list of signatories is published on the OECD website.
By signing the Multilateral Competent Authority Agreement on automatic exchange of financial account information Slovenia has made a commitment to exchange the financial account information already in 2017.
Under the OECD Standard, jurisdictions obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. OECD Standard sets out the financial account information to be exchanged, the financial institutions that need to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.
The OECD Standard is published in publication entitled Standard for Automatic Exchange of Information of Financial Account Information in Tax Matters which consists of the four key parts: the text of a model Competent Authority Agreement (hereinafter: CAA); the Common Reporting Standard (hereinafter: CRS); the Commentaries on the CAA and the CRS; and the CRS XML Schema User Guide.
To ensure the compliance with the international development in this field, EU Council adopted Council Directive 2014/107/EU on 9 December 2014 amending Council Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation. The Directive includes Annex I – reporting and due diligence rules for financial account information and Annex II – complementary reporting and due diligence rules for financial account information.
Council Directive 2014/107/EU and CRS are implemented into Slovenian national legislation with the Tax Procedure Act (ZDavP-2). The Act amending the Tax Procedure Act (ZDavP-2I) was adopted on the regular session in the National Assembly on 19 November 2015.