The proposed amendment to the Slovenian Tax Procedure Act, implementing the Directive 2018/22 on the automatic exchange of information, sets out new rules for reporting on information related to certain cross-border arrangements of the companies to the Financial Administration of the Republic of Slovenia (“FURS”).
According to the proposed amendments, Slovenian tax consultants or companies shall be required to report to the FURS on so-called reportable cross-border arrangements causing company’s domestic tax optimization within 30 days of the adoption of such a business arrangement (e.g. moving the company’s department overseas). Once provided with information on reportable cross-border arrangements, FURS shall automatically exchange such information with other tax authorities within the EU and vice versa. Until the end of 2018, the information on approximately EUR 3,000 billion of financial incomes have been exchanged between EU Member States, according to the EU Commission’s report.
A fine in the amount of up to EUR 30,000 shall be imposed on Slovenian tax consultants (or companies) failing to report on reportable cross-border arrangements. However, certain tax consultants (i.e. foreign tax consultants and tax consultants acting under duty to protect business secrecy, such as lawyers) shall be exempt from their duty to report. In such a scenario, the company or its other tax consultant remains solely responsible for providing the requested information to the FURS.