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Romania will make financial information exchange about the accounts of natural persons with other states
Romania will be able to make exchange of information with other states starting 2017 about the financial accounts of natural persons, with the purpose of combatting fraud, evasion and aggressive fiscal planning, a draft law which was passed on Wednesday by the government says.
The exchange will include, among others, information for the identification of the person (name, address, fiscal identification code), information concerning the number of the account, name and number of identification (if there is any)of the financial institution which reports, information about the balance or the worth of the account, and in the case of custodian account, information concerning the gross sum of the interest, the dividends or other income for the assets which exist in the account or the gross sum of the collections from sales or the recovery of financial assets.
The draft law ratifies the interinstitutional multiannual agreement signed in Berlin on 29 October 2014.
Once coming into power, the agreement will allow Romania to exchange information with a view to identifying the natural persons or the companies which avoid the financial agencies by transferring money in the accounts found abroad.
Romania will make a list of the states which want to automate these exchanges of information as the information exchange will be made on bilateral basis between the authorities. Thus, the automated exchange of information regarding the financial accounts will be made as each state found on the lists Romania will produce has covered the procedure for the coming into power of the multiinstitutional agreement.
For Romania the exchange of information will be made starting with September 2017.
‘The fiscal fraud and fiscal evasion at border level have become issues of concern at world level, so that the European Commission in its press release on 6 December 2012 established an action plan regarding the consolidation of the fight against fraud and fiscal evasion, the automated exchange of information by making an important instrument for this matter. The European Council of 22 May 2013 required the extension of the automated exchange of information at the level of the Union and at global level with a view to combating fiscal fraud, fiscal evasion and aggressive fiscal planning. In February 2014 the Organisation for Cooperation and Economic Development (OCDE) published the main elements of global standard for the automated exchange of information regarding financial accounts and starting with July 2014 the OCDE Council published the complete global standard. As a result of the extension of the area of automated exchange of financial information OCDE promoted the multinstitutional agreement for automated exchange of information regarding financial accounts which include provisions regarding the observance of the fiscal secret’ the government justifies this decision in a press release.
The ministry of public finances signed for Romania this agreement which will allow the exchange of information at the level of global standard agreed by OCDE, document in accordance with the legislation in our country and which corresponds to the policy promoted by Romania in the domain of information exchange.
The contribution of Romania for the financing of the Secretariat of the Coordination Body for the multiinstitutional agreement for automated exchange of information regarding financial accounts will be paid annually from the budget of the ministry of public finances starting with the year of signing the agreement.