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Our comments comments for publication about Disclosure of Tax Avoidance Schemes to the State Tax Inspectorate

2018-03-20 18:15
Tax news

JURIDICON attorney-at-law, tax expert dr. Laimonas Marcinkevičius has given comments to "Business News" for their publication about Disclosure of Tax Avoidance Schemes to the State Tax Inspectorate. This publication analyses new model's disclosure's rules, introduced this year's March 9th by OECD. These rules require lawyers, accountants, financial advisors, banks and other service providers to inform tax authorities of any schemes they put in place for their clients to avoid reporting under the OECD/G20 Common Reporting Standard (CRS) or prevent the identification of the beneficial owners of entities or trusts. It is believed that these rules in Lithuania will take effect not earlier than a year later. However, it should be aware that, in certain cases, notification will also be required of the schemes entered into prior to the effective date of the rules.

The publication provides general information on the obligation for intermediaries to report on the services provided to their Clients bypassing the requirement for disclosure of bank account information (CRS). “Many taxpayers that held undeclared financial assets offshore have come clean to their tax authorities in recent years, which has already led to over 85 billion of additional tax revenue” – said Mr. Marcinkevičius.

As indicated in the publication: "the new rules also require the reporting of structures that hide beneficial owners of offshore assets, companies and trusts." Attorney-at-law Laimonas Marcinkevičius notes, that “the information must include all the steps and transactions that form part of the Arrangement or Structure including key details of the underlying investment, organisation and persons involved in the Arrangement or Structure and the relevant tax details of the Clients and users of the Arrangement or Structure as well as any other Intermediaries. Also attorney-at-law indicates that, “the rules do not require an attorney, solicitor or other admitted legal representative to disclose any information that is protected by legal professional privilege or equivalent professional secrecy obligations or the intermediary is not established in the EU, in such cases the taxpayer himself must report about the schemes.”

In addition, the rules provide an obligation, that Promoters are require to disclose CRS Avoidance Arrangements entered into prior to the effective date of the rules, but after 29 October 2014, but only when the value or balance of the relevant Financial Account equals or exceeds USD 1,000,000.

The publication was released on newspaper "Business News" ("Verslo žinios").

Contact 
Attorney at Law, Tax Lawyer, Legal Project Manager
Telephone 
+370 5 2691101
Fax 
+370 5 2691010
Mobile 
+370 612 11222
Email 
laimonas.marcinkevicius@juridicon.lt