Bank duty to provide information to the tax authorities expanded

From 1 January 2015 the list of information about clients which banks must provide to the tax authorities is expanded (Law of the Republic of Belarus of 30 December 2014 No. 224-Z).

In particular, information about client bank account activity must be provided to the Belarusian tax authorities in response to their inquiries.

Banks must provide information to the tax authorities regarding commercial organisations and individual entrepreneurs if the total amount of funds arriving in their bank accounts during a calendar month exceeds 5,000 basic units (about EUR 52,250).

Banks that receive an inquiry from the Ministry of Taxes and Duties of the Republic of Belarus must provide information about bank accounts of foreign companies as well as citizens and tax residents of foreign countries, including eg the number, the owner, cash balance on the bank account. This disclosure is mandatory in the case of a request from a foreign tax authority in a state with which the Republic of Belarus has a treaty that requires the Republic of Belarus to provide information to that state to ensure full payment of taxes and duties. Belarus is currently tied by double taxation treaties with 65 countries and these treaties may be viewed as establishing an obligation on the part of the Republic of Belarus. Furthermore, there are special treaties with Georgia, Uzbekistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Armenia and Russia regarding exchange of such information.

Banks must provide information related to individuals and involving bank secrecy on the basis of agreements concluded with the Ministry of Taxes and Duties of the Republic of Belarus.

Previously, banks were allowed not to provide such information in response to tax authorities’ inquiries by relying on bank secrecy.