The Law of Ukraine No № 322-IX of 3 December 2019 “On Introduction of changes to some laws of Ukraine due to ratification of the Agreement between the Ukrainian Government and Government of the United States of America to improve implementation of tax laws and application of the provisions of the US Foreign Account Tax Compliance Act of 3 December 2019” entered into force on 27 December 2019.
So the bank secret information will be disclosed to the tax institutions in cases and in volume, stipulated by FATCA Agreement and other ratified international agreements, containing provisions on information exchange for tax purposes, or in accordance with the interdepartmental agreemnts concluded on the basis of such international agreements.
At the same time we have changes to the Tax Code of Ukraine, introduced by the Law of Ukraine No 323-IX of 3 December 2019.
There are new terms: “reportable account”, “financial agent”, “financial account”. In order to detect such reportable accounts the financial agents will take measures, by means of which they can identify countries or territories of residence of:
- a) natural person — owner of a financial account;
- b) legal entity — owner of a financial account;
- c) natural person — final beneficiary owner (controller) of the legal entity, owning a financial account.
Imposition of fine amounting to 100 minimum wages (set as of the 1st of January of the accounting year) is stipulated for failure to submit or for submission with violations, fraudulent data or errors by the financial agents of the reports on reportable accounts.
The purpose of the US Foreign Account Tax Compliance Act is to prevent tax evasion by the American citizens working on the territory of other countries. This Act obliges the foreign banks and other financial institutions to provide the US Tax Service with information on account numbers, turnover and balance. The USA is the only country where all the citizens (without any exclusion) are its tax residents, irrespective of the place of residence.
Source: newspaper Interactive Accounting