The tax authorities are already raring to go – for the first time, from September 2017, tax data for the year 2016 will be made available as part of the Automatic Exchange of Information (AEOI) forwarded to the Federal Central Tax Office (BZSt). The Data exchange is to be completed by 30 September 2017 at the latest.
What exactly is this automatic exchange of information (AEOI)?
In the fight against international tax evasion, many countries have now committed to exchanging this data. This includes, in particular, those countries that have hitherto invoked banking secrecy.
Notwithstanding the general start date for the automatic exchange of information in September 2017, Switzerland and Austria will not begin exchanging information with the Federal Central Tax Office (BZSt) until September 2018 for tax periods from 1 January 2017.
What is reported?
- Name, address and tax identification number or tax number,
- Date and place of birth
- tax residence
- Account numbers and account balances
- Interest, dividends, income from certain insurance policies, proceeds from disposals
Who is reporting this?
Banks and quasi-banking institutions.
As a result of this exchange of information, it must be expected that the tax office will now become aware of all taxable foreign matters, e.g. investment income, undeclared income, etc., and – unless preventative action has been taken by way of a voluntary disclosure – will initiate the relevant criminal proceedings.
Due to a lack of practical experience, it is currently unclear when the data sent to the Federal Central Tax Office (BZSt) will ultimately be cross-checked against the relevant taxpayer’s records held by the competent tax office for their place of residence. This is relevant to the question of the deadline by which a voluntary disclosure, which exempts the taxpayer from penalties, can still be made through qualified specialist tax lawyers and tax advisers. However, it is to be assumed that the tax authorities will analyse the data relatively quickly and take appropriate action. In this respect, appropriate legal advice should be sought at short notice in cases involving foreign affairs that are subject to the Automatic Exchange of Information (AEOI), in order to prevent any criminal proceedings and their consequences.
For further information, please do not hesitate to contact our specialist tax lawyers and tax advisers.
We’d be happy to advise you on this.