Parliament approved Amendment to the Tax Code for the second reading

The proposed Amendment significantly modifies the tax secrecy. The information whether there is/was a tax audit or tax execution proceeding will not be considered as a tax secrecy. 
In accordance with the respective Amendment the exemptions from the tax secrecy will not be explicitly stated in the Tax Code, tough the respective authorities will have to prove their entitlement for tax secrecy disclosure which would depend on their responsibilities resulting from Tax Code, other legislation or international treaty.

The individual requests to disclose a tax secrecy will be considered formally with the requestors being responsible for fulfilling of the tax secrecy.

In line with the proposed amendment disclosure of the information on breach of obligation stipulated by the Tax Code or other legislation by the President of the Financial Administration (or authorized person) will not be considered as a breach of tax secrecy, provided there is a valid decision in this respect. Information about the tax secret disclosure will be registered in the taxpayer file.

Amendment of the Tax Code introduces also the obligation of electronic communication with the Tax Authorities as of 1 January 2018 for all legal entities and as of 1 July 2018 for individuals registered for income tax.

The amendment of the Tax Code, based on Action plan of fight against tax evasion for the period 2017 – 2018, proposes also introduction of a summary protocol from several tax audits that are performed simultaneously at several taxpayers where the breach of the tax law was identified especially in a case where the respective taxpayers are part of a fraud chain. A summary protocol will not replace the obligation of the tax authorities to issue a protocol from the individual tax audits.

The proposed wording introduces also indexation of taxpayers including the special tax regimes for reliable taxpayers.

In order to improve business environment it is proposed to extend the deadline for filing of an appeal from the current 15 days to 30 days and decrease a fee for a binding ruling.