There will most likely also be changes in Act No. 563/2009 Coll. on tax administration (tax procedure code) beginning next year. The Ministry of Finance of the Slovak Republic has put forward a draft amendment of the act on tax administration whose aim is to contribute towards greater transparency of the business environment, a better public awareness, and the reduction of tax evasion.
Once approved, the act in question would become effective as of 1 January 2018.
Hereby we describe and offer you most significant upcoming changes in the act on tax administration:
- Tax reliability index
The amendment of the act proposes to introduce an objective and independent evaluation of tax subjects.
The tax reliability index will refer to the evaluation of a tax subject based on the latter’s duty vis-a-vis the Financial Control. The purpose is to motivate tax subjects to achieve the highest possible reliability which will in turn allow them to use certain legal advantages over the tax subjects with lesser reliability. Furthermore, it is proposed to provide reliable tax subjects with special tax schemes.
- Obligation to submit notifications electronically also applies to self-employed persons
Another novelty represents a proposal that the obligation to submit notifications via electronic means also applies to all tax subjects that are legal persons registered in the Commercial Register, or natural persons who are entrepreneurs registered for income tax. The obligation to communicate electronically would also apply to the representatives of tax subjects who are not attorneys at law or tax consultants. The only exception would be the natural persons who are registered for the income tax due to the sole reason of real estate rental which is not regarded as business.
- Aggregate report
The new article is based on the action plan of the fight against tax fraud. The Financial Administration of the Slovak Republic will be entitled to issue an aggregate report on the interconnected transactions of the tax subjects that were discovered to violate or evade tax rules, including especially the cases when the tax subjects are involved in a fraud network. The aggregate report will be issued especially for the reason of a comprehensive evaluation of the behavior of all involved tax subjects. It can be based on either a tax audit or a local investigation. However, the aggregate report will not replace individual reports from tax audits.
- List publication
The amendment proposes that the Financial Administration of the Slovak Republic makes new lists available to the public. Based on the data from the filed tax returns for the purposes of the income tax for legal persons (including those that have not been established or founded for business purposes), it is envisioned to quarterly publicize the list of tax subjects, together with the amount of their imposed tax, additionally imposed tax or tax loss.
Based on the data from the filed tax returns for the purposes of the income tax, it is envisioned to quarterly publicize the list of tax subjects, together with the amount of their claimed excessive deduction or additionally claimed excessive deduction. The minimum amount that will serve in the list as the basis for publishing the claimed excessive deduction or the additionally claimed excessive deduction will be established by a public statute issued by the Ministry of Finance of the Slovak Republic.
Once passed, the act in question would become effective as of 1 January 2018.
However, we would like to point out that the amendments of the acts in question are currently put forward for the marking up process and the actual wording of the proposed articles may be subject to change or completion. We will naturally keep you updated on the approved amendments of the acts effective as of 1 January 2018.
