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Croatia signs agreement on exchange of information for tax purposes

ZAGREB, Oct 29 (Hina) - Croatia is one of 38 countries which acceded to the Multilateral Competent Authority Agreement on the automatic exchange of financial information, with Finance Minister Boris Lalovac signing it in Berlin on Wednesday at the 7th Organisation for Economic Cooperation and Development (OECD) Global Forum on Transparency and Exchange of Information for Tax Purposes, the Finance Ministry said.

The head of the Croatian Tax Administration, Boris Suvak, also attended the two-day event which began yesterday.

The government last week adopted a conclusion on Croatia's accession to the multilateral agreement, which is important for Croatia because it will be able to access its taxpayers' information on foreign accounts, which is important to prevent tax evasion.

Under the agreement, tax administrations have the obligation to collect and automatically exchange information on financial accounts in line with a global standard which the OECD developed in cooperation with G8, G20 and EU countries.

Croatia is one of the states supporting the early adoption of the global standard and the adoption of national laws required for that so that the data exchange could begin in September 2017 at the latest.

A statement issued on the occasion of the agreement says that a group of 52 states supporting the early adoption of the global standard have recognised the importance of preventing tax evasion globally and committed to the early adoption of a new, uniform global standard on the exchange of information on taxpayers.

Many countries took a further step towards implementing the new global standard by signing a framework agreement which will provide a legal mechanism for the automatic exchange of information.

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