In September 2017 tax data will be exchanged between national financial authorities for the first time as part of the Automated Information Exchange (AIA). 54 States will then transmit data from bank accounts and securities deposits. 47 further states will begin in September 2018, one year later.
The automatic exchange of information makes citizens and financial accounts transparent throughout the world
In total, 101 countries around the world have now committed themselves to participating in the AIA. The automatic exchange of information will in the future provide the global financial authorities with an effective tool for the detection of tax evasion related to foreign assets.
The master data reported via the Automatic Information Exchange are already very extensive and include the name of the account owner, address, account number, tax number, date of birth, place of birth, account balances, interest, dividends and price gains.
The international community sees the automatic exchange of information as an effective means of combating tax evasion. From tax evasion to income from capital assets (interest, dividends) to the deduction of capital gains, due to gains in the value of securities. In addition, foreign tax authorities have other means, such as direct group requests or individual requests to banks.
Depreciation strategies entail high post-discovery risks
I still have cases in which bank customers are implementing so-called mitigation strategies based on advisory recommendations or even in their own initiative. This means that prior to the entry into force of the Automatic Information Exchange, they will liquidate accounts and deposits, transfer the funds or withdraw cash.
I strongly advise you of this, as there are also possible retroactive requests or queries. The risk of discovery and the risk of punishment are even increasing. Possible legacies should be professionally legalized as soon as possible.
A group request to a Swiss bank by the German Treasury may, for example, be: a request for the transmission of all customer data, which in fiscal 2016 or 2017 have withdrawn more than 1,000 euros in cash. A single request includes the specific name of whether that person has an account or a deposit account with a particular bank. Bank secrecy in tax matters is no longer in existence even in formerly privileged countries such as Switzerland, Austria, Luxembourg or the Principality of Liechtenstein, at the latest with the implementation of the AIA.
A prominent state does not participate!
When I look at the list of countries participating in the AIA, I find that many of the former tax havens are also overseas. Even for Panama, the pressure in the last year, after the publication of the Panama Papers, has become so great that this country – which can well be described as the mother of tax-oasis systems – will implement the AIA in the future.
Significantly, however, a very important state is lacking, which asks, of course, information from all other states, or even interrogates or interrogates them independently. I speak of the United States of America.
My readers I keep inCapital protection confidential, About all participating countries at the Automatic Information Exchange (AIA) as well as the most important foundations, the timetable and the most important case strings. I also question whether, before these protectionist measures taken by the United States, the opening of a strategic bank account in the USA is now meaningful.
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