Lithuanian parliament grants more powers to tax collectors
Lithuanian government has submitted Tax administration law amendment which increase control powers granted to Lithuanian tax authority. After negotiations Parliament budget and economy committee approved the draft law on 12 June 2014. Hearing in Parliament will probably be held during the autumn session.
Access to personal banking information
Previous regulation limited tax authoritie’s access to financial data kept by Lithuanian credit institutions. Banks were providing information only regarding accounts opened/closed by all persons and mortgages received by natural persons. New draft regulation, implementing EU Directive on Administrative Cooperation (Council Directive 2011/16/EU) establishes that Lithuanian banks are obliged to provide annual information to Tax authority regarding account turnovers, balances, interest and payment obligations of their clients, both companies and natural persons. Tax authority indicates that such information exchange between Lithuania and EU Member states shall co mmence on 2016. However this date maybe earlier, as this year Lithuanian government is expecting to sign bilateral Treaty with Government of United States on implementation of US Facta law, by which both governments will undertake to exchange financial data of their respective citizens and residents from 2014.
Exaction of tax arrears
Current regulation establishes that tax arrears exaction is postponed if tax litigation is initiated. New amendments grant right to tax authority to exact 10 % of calculated tax arrears without court decision. Such tax exaction rules are established in Ireland, Italy and Czech Republic. To balance the obligations Lithuanian government obliges to pay nearly 11 % yearly interest for incorrectly withdrawn sums if courts decides in favor of the tax payer.
Andrius Apanavičius, lawyer of the Gencs Valters Law Firm in Vilnius.
Practising in fields of Tax administration and Interest tax law in Latvia, Lithuania and Estonia
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