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Editor in chief: Angelo Scorza
02/11/18 15:13

Exchange of tax information between States

Increasingly severe international controls by the tax authorities, Studio TCL observes

The tax authority has strengthened controls to counter the increasingly fraud and international tax evasion.

The action of the Financial authorities takes the form of preventing and countering money laundering and terrorist financing, implemented through the automatic data and information exchange between States, in an international cooperation outlook.

A big leap forward in the fight against tax evasion took place with the approval of the Fourth Anti-Money Laundering Directive (Directive 2015/849 / EU). While previously, only those informations that were related to the obligation of registration and conservation by the obliged subjects could be used in the tax field, with the new Directive, instead, the obligation of automatic data exchange concerns also suspicious transactions. In this way, all the anti-money laundering information gathered during the inspections and controls can be used for tax purposes, guaranteeing the complete interaction between the anti-money laundering and the tax procedure.

At the same time, the Financial Intelligence Units role is reviewed and extended. The Financial Intelligence Units have the purpose to analyze and reconstruct the path of "suspect" financial flows, identifying the possible underlying intent and reporting to the foreign counterparts involved any relevant information always in an international cooperation outlook.

This is a significant change in the way the anti-money laundering obligations are carried out by banking and financial intermediaries, professionals (including accountants, lawyers, notaries, labor consultants, statutory auditors), real estate agencies, credit recovery companies, service game providers, and so on.

A further strengthening of the discipline against money laundering is the V Directive (Directive 2018/843 / EU) which introduces the following main changes:

  • stricter regulation to prevent virtual currencies from being used to cover money laundering or terrorist financing;
  • with regard to prepaid cards, the reduction of the maximum threshold (from € 250 to € 150) required for identification of the prepaid card holder;
  • regulation extends also to gallery owners, antique dealers, art traders, provided that the transaction value is equal to or greater than € 10,000;
  • implementation of cooperation between FIUs;
  • strengthening controls on operations involving countries exposed to higher risk of money laundering.

The innovations introduced with the IV Directive and V Directive against money laundering therefore have important effects on the auditors’ activities, in order to guarantee an adequate activity in fighting money laundering and terrorism, while still respecting some fundamental cornerstones, such as the report confidentiality, as required by Legislative Decree n.231/2007.

Fabrizio Moscatelli

Chiara Vurruso

PKF - Studio TCL Tax Consulting Legal

Genova – Milano



TAG : Tax corner