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Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews: Slovenia 2014
PHASE 2: IMPLEMENTATION OF THE STANDARD IN PRACTICE
April 2014 (reflecting the legal and regulatory framework as at November 2013)
This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the OECD or of the governments of its member countries or those of the Global Forum on Transparency and Exchange of Information for Tax Purposes. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
Please cite this publication as: OECD (2014), Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews: Slovenia 2014: Phase 2: Implementation of the Standard in Practice, OECD Publishing. http://dx.doi.org/10.1787/9789264210158-en
Series: Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews ISSN 2219-4681 (print) ISSN 2219-469X (online)
OECD 2014
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TABLE OF CONTENTS 3
Table of Contents
About the Global Forum . 5 Executive Summary . 7 Introduction11 Information and methodology used for the peer review of Slovenia .11 Overview of Slovenia . 12 Recent developments17 Compliance with the Standards 19 A. Availability of Information 19 Overview 19 A.1. Ownership and identity information 21 A.2. Accounting records 49 A.3. Banking information 57 B. Access to Information . 63 Overview 63 B.1. Competent Authoritys ability to obtain and provide information . 64 B.2. Notification requirements and rights and safeguards. 74 C. Exchanging Information 77 Overview 77 C.1. Exchange of information mechanisms 78 C.2. Exchange of information mechanisms with all relevant partners 86 C.3. Confidentiality 88 C.4. Rights and safeguards of taxpayers and third parties. 92 C.5. Timeliness of responses to requests for information 92
4 TABLE OF CONTENTS Summary of Determinations and Factors UnderlyingRecommendations. 99 Annex1: Jurisdictions Response to the Review Report103 Annex2: List of all Exchange-of-Information Mechanisms inForce . 104 Annex3: List of all Laws, Regulations and Other Material Consulted .110 Annex4: People Interviewed During the On-Site Visit .111
EXecutive SummarY 7
Executive Summary
1. This report summarises the legal and regulatory framework for transparency and exchange of information in Slovenia as well as its practical implementation. The international standard, which is set out in the Global Forums Terms of Reference to Monitor and Review Progress Towards Transparency and Exchange of Information, is concerned with the availability of relevant information within a jurisdiction, the competent authoritys ability to gain timely access to that information, and in turn, whether that information can be effectively exchanged with its exchange of information (EOI) partners. The assessment of effectiveness in practice has been performed in relation to a three year period (July 2009 to June 2012). 2. Slovenia is one of the states of former Yugoslavia and gained independence on 25June 1991. Its economic development has been strong since its accession to the European Union in 2004. Slovenia has a fully developed tax system including an income tax based on taxation of worldwide income of residents. 3. Comprehensive registration requirements exist for entities in Slovenia, which must register in different registers but limited liability companies and entrepreneurs can now carry out certain registration requirements at a one-stop-shop created by the government. The Court Register and Tax Register contain full ownership information on limited liability companies, general and limited partnerships and economic interest groupings. The share registers of public limited companies and partnerships with share capital are kept by the Central Securities Clearing Corporation (CSCC), which was specifically created for that purpose. The central register of the CSCC also includes information on the owners of bearer shares, which may be issued by both public limited companies and limited partnerships with share capital. No ownership information is available on foreign companies with sufficient nexus to Slovenia, in particular having their place of effective management there. Similarly, ownership information on foreign partnerships carrying on business in Slovenia or deriving taxable income is not consistently available. 4. Although the concept of a trust is not recognised in Slovenia, residents may act as a trustee or trust administrator of a foreign trust. The
8 EXecutive SummarY
combination of the obligations under Anti Money Laundering/Counter Financing of Terrorism (AML/CFT) legislation and the general tax obligations to maintain and submit information to the Slovene tax authorities permit that information regarding the settlors, trustees and beneficiaries of foreign trusts is available to the Slovene authorities. The Register of Foundations contains information on the founders and persons authorised to represent all foundations. As foundations may only be established for beneficial or charitable purposes, they may not be created to benefit named individuals or solely members of a family. 5. A general obligation to keep accounting records is in place in respect of all relevant entities and arrangements. The retention period for accounting records under tax law, which applies to all relevant entities, is connected to the statute of limitations and is ten years. 6. The AML/CFT legislation ensures that all records pertaining to the accounts as well as to related financial and transactional information is required to be kept by Slovene banks. In addition, certain information on transaction accounts is available through a public register. 7. In practice, by virtue of its thorough system of registration, ownership and identity information is available in Slovenia and directly available to the Tax Administration in the vast majority of cases. In addition, legal obligations in relation to accounting information and underlying documents are generally respected by all entities carrying on business activities, therefore, the information was available and exchanged when requested, as confirmed by the comments received from Slovenias treaty partners. 8. The access powers available to the Slovene tax authorities enable them to obtain information from legal entities and individuals carrying on business either automatically, by written request or through a visit of a tax officer to the business premises. When information must be obtained from individuals who do not carry on business, the tax authorities can do so by written request. The access powers are backed up by monetary penalties. There are no secrecy provisions, which would impede the effective exchange of information. 9. Slovenias exchange of information responsibilities lie with the International Information Exchange Unit (the Unit), which is part of the General Tax office of the Tax Administration and acts as the central liaison office. To answer exchange of information requests, the Unit relies on the wide range of information to which it has direct access. However, in most cases, the incoming requests are transferred to a Local Tax Office/Special Tax Office which is responsible for collecting the requested information from the person concerned or from a third party in possession of the information. Slovenia also exchanges information spontaneously and automatically with an increasing number of partners.
EXecutive SummarY 9
10. Slovenia has a network of information exchange mechanisms that covers 94jurisdictions, (including all relevant partners) 58 by way of a DTC and 3 by way of a TIEA. Information can be exchanged under DTCs, TIEAs, the OECD/CoE Convention on Mutual Administrative Assistance in Tax Matters (Multilateral Convention) and EU instruments. The Multilateral Convention covers 33 jurisdictions that Slovenia does not have a bilateral agreement with. The confidentiality of information exchanged with Slovenia is protected by obligations implemented in the information exchange agreements, complemented by domestic legislation, which provides for tax officials to keep information confidential. 11. During the period under review, Slovenia received a total of 74 requests for information (18 requests received from 1July 2009 to 31December 2009, 18 for 2010, 27 for 2011 and 11 for the period from 1January 2012 to 30June 2012), from 17 treaty partners, the most significant being Austria, Croatia, Germany and Italy. Slovenias response timeframe is generally good. On average, for the period under review, 60% of the requests were answered in less than 90days and 85% in less than 180days. However, some peers have noted that status updates are not provided when answers cannot be provided within 90days. 12. Comments received by Slovenias main treaty partners are very positive and reflect the efficient EOI process in place in Slovenia and the appropriate resources devoted to it. They show that Slovenia is a valuable treaty partner able to provide complete answers to the majority of the EOI requests they receive every year. Comments received from Slovenias treaty partners indicate that Slovenia is fully committed to the international standard of transparency and exchange of information for tax purposes. 13. A follow up report on the steps undertaken by Slovenia to answer the recommendations made in this report should be provided to the PRG within twelve months after the adoption of this report. 14. Slovenia has been assigned a rating for each of the 10 essential elements as well as an overall rating. The ratings for the essential elements are based on the analysis in the text of the report, taking into account the Phase1 determinations and any recommendations made in respect of Slovenia legal and regulatory framework and the effectiveness of its exchange of information in practice. These ratings have been compared with the ratings assigned to other jurisdictions for each of the essential elements to ensure a consistent and comprehensive approach. On this basis, Slovenia has been assigned a rating of Compliant for each essential element. In view of the ratings for each of the essential elements taken in their entirety, the overall rating for Slovenia is Compliant.
Introduction 11
Introduction
12 Introduction
summary of the findings against the elements is set out at the end of this report. In addition, to reflect the Phase2 component, recommendations are made concerning Slovenias practical application of each of the essential elements and a rating of either: (i)compliant, (ii)largely compliant, (iii)partially compliant, or (iv) non-compliant is assigned to each element. An overall rating is also assigned to reflect Slovenias overall level of compliance with the standards. 18. The Phase1 assessment was conducted by a team which consisted of two expert assessors and two representatives of the Global Forum Secretariat: Mrs. Mnica Sionara Schpallir Calijuri, Head of Larger Taxpayer Unit, Federal Revenue Secretariat of Brazil; Ms. Helen OGrady, Office of the Revenue Commissioners, Ireland; and Ms. Mary OLeary and Mr. Mikkel Thunnissen from the Global Forum Secretariat. The assessment team examined the legal and regulatory framework for transparency and exchange of information and relevant exchange of information mechanisms in Slovenia. 19. The Phase2 assessment was conducted by a team consisting of two assessors and one representative of the Global Forum Secretariat: Ms Carine Kokar, Senior Advisor in the French International Tax Unit and Ms Mnica Sionara Schpallir Calijuri, Counsellor at Administrative Board of Tax Appeals Ministry of Finance ofBrazil; and Ms Mlanie Robert for the Global Forum Secretariat. The team evaluated the implementation and effectiveness of Slovenias legal and regulatory framework for transparency and exchange of information and its relevant information exchange mechanisms.
Overview of Slovenia
20. Slovenia is situated in South-Central Europe, bordering Italy to the west, Austria to the north, Croatia to the south and southeast and Hungary to the northeast. The land mass of Slovenia covers 20273square kilometres. The population of Slovenia is estimated to be 2.05million1 and the official language spoken is Slovene. In those municipalities where Italian or Hungarian national communities reside, Italian and Hungarian are also official languages. Slovenias capital is Ljubljana with approximately 272000 inhabitants2. 21. Slovenia is one of the states of former Yugoslavia and gained independence on 25June 1991. Slovenias economic development has been strong since its accession to the European Union in 2004. During the period 1995 2008, economic growth in Slovenia was stable, reaching an average slightly above 4%. However, since the global economic crisis, this rate has slowed and
1. 2. August 2012 estimate by the Republic of Slovenia, www.vlada.si/en. See footnote 1.
Introduction 13
its growth rate in 2012 was 2.3%. Slovenias Gross Domestic Product (GDP) was EUR35.5billion in 2012. Agriculture, forestry, and fishing comprise a comparatively low 2.6% of GDP with other industries comprising 30.6% and services 66.8%. The main other industries include chemicals, electrical engineering, electronics, food processing, metal, motor vehicles, lumber, pharmaceuticals and textiles. Slovenias trading partners tend to be mainly other Eurozone countries, with its main trading partners being Germany, Austria, Italy, France and Croatia.3 22. Outward Foreign Direct Investment (FDI) peaked in 2007 at USD1 802million. However, largely owing to the global economic crisis this has since decreased significantly and by 2012 was USD94million. The level of inward FDI in Slovenia is one of the lowest in the EU per capita and was last reported at USD145million in 2012.4 23. Slovenia has been a member of the European Union (EU) since 1May 2004. It has also been a member of the Economic and Monetary Union since May 2004 and adopted the euro as its national currency on 1January 2007. Slovenia is a member of the World Trade Organisation (WTO), the North Atlantic Treaty Organisation (NATO), the United Nations (UN) and the Organisation for Economic Cooperation and Development (OECD).
Legal system
24. The basis for the Slovene system of Government is to be found in its Constitution, which was adopted on 23December 1991. Slovenia is a democratic republic and a social state governed by law. Pursuant to the separation of powers doctrine, the authority of the state is based on the separation of legislative, executive and judicial powers, with a parliamentary system of government. The National Assembly (being the highest legislative authority), comprised of 90 deputies with elections held every four years, is regarded as the Slovene Parliament. However, the National Council, the representative body for a number of interest groups such as employers, farmers and local interests, also exercises some minor legislative powers (making the system of government as recognised by the Constitutional Court of Slovenia as incompletely bicameral). 25. Slovenia has inherited a civil legal system owing to its once forming part of the Austrian-Hungarian Empire. The Constitution is the states
3. 4. The data in this paragraph is derived from data as published by the Republic of Slovenia, www.vlada.si/en and the Statistical Office of the Republic of Slovenia, www.stat.si. Data drawn from the United Nations Conference on Trade and Development (UNCTAD), available at www.unctadstat.unctad.org.
14 Introduction
supreme law and all laws passed must be in conformity with the Constitution. All laws passed must also be in conformity with generally accepted principles of international law and with all treaties that have been ratified by the National Assembly. Treaties once they are ratified and published are directly applicable (s.8 of the Constitution). The National Assembly ratifies treaties by a majority of votes cast by those deputies present. (s.86 of the Constitution). Judicial power in Slovenia is exercised by the courts. All courts in Slovenia are regular courts except when a special law established a special court in a specific area (for example: labour disputes, administrative matters). They are independent in the exercise of their functions and they must operate in accordance with the Constitution, and the rule of law. The court system consists of courts with both general and special jurisdiction. Courts with general jurisdiction include 44 local courts, which are courts of first instance for both criminal and civil matters within their jurisdiction. There are 11 regional courts which are the courts of first instance for both criminal and civil matters when the jurisdiction of the local courts is exceeded and 4 higher courts which are courts of appeal from both the local and regional courts. The Supreme Court is the highest court with 37 judges who are elected by the National Assembly. Appeals from all lower courts are made to the Supreme Court. Special courts comprise four labour courts and a social court (which rule on labour-related and social insurance disputes), and the Administrative Court, which deals with administrative matters and has the status of a higher court. There is also a Constitutional Court which upholds the constitutionality and legality of the legislative acts as passed by the National Assembly.
Financial sector
26. Although a large portion of the Slovene economy remains in state hands, in recent years a certain amount of privatisation has been seen in the banking sector. The financial sector is mainly regulated by the Banking Act, the Financial Instruments Market Act, the Investment Funds and Management Companies Act and the Insurance Act. 27. As at July 2013, Slovenia had 18 banks (one of them is currently in the process of liquidation), 3 savings banks and 3 branches of foreign banks. Banks in Slovenia are supervised by the Bank of Slovenia whose competences are set out in the Bank of Slovenia Act. As of December 31, 2012 the total assets ofbanksin Slovenia amounted to EUR46billion. The Bank of Slovenia acts in a supervisory role, ensuring that banks apply the standards set by and recommendations of the competent national and international institutions and setting out rules for the safe and sound operation of banks. The Bank of Slovenia exercises this control by reviewing reports and other documentation of banks to which it has direct access and the imposition of control measures. The Slovene stock exchange is regulated by the Financial
Introduction 15
Instruments Market Act. Investment funds and management companies are regulated by the Investment Funds and Management Companies Act which are all in line with the EU capital markets legislation most notably the Markets in Financial Instruments Directive and Undertakings for Collective Investment in Transferable Securities Directive (UCITS). As at July 2013, there were 16 brokerage companies, 11 investment funds management companies and 1 stock exchange market (Ljubljana Stock Exchange) in Slovenia. 28. Capital markets are supervised by the Securities Market Agency the task of which is to maintain a safe, transparent and efficient market in financial instruments. By exercising control over the brokerage companies, those banks engaged in investment services, management companies, investment funds, mutual pension funds and publicly traded companies, it aims to achieve a level playing field for efficient operation of a market in financial instruments. 29. The core elements of Slovenias Anti Money Laundering (AML) regime are set out in the Slovene Criminal Code, the Prevention of Money Laundering and Financing of Terrorism Act (PMLTFA) and some sector specific laws. Pursuant to the PMLTFA, service providers are required to carry out customer due diligence (CDD) when establishing a business relationship by establishing and verifying the identity of their customer and the beneficial owner. Supervision of these obligations lies primarily with the Office for Money Laundering Prevention, although for specific sectors the supervisor of that sector (such as the Bank of Slovenia in respect of banks) also has supervisory powers.
Business registration
30. The Business Register is the central database of all businesses within Slovenia which carry out profit and non-profit activities, in their own right or as the branch of a foreign company. The register is maintained and administered by the Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES). The Business Register is the Court Register, therefore all data entered into the Court Register are immediately entered into the Business Register. The Court Register is kept as a computerised database by the competent court, but is also administered by AJPES. To facilitate the process of registration a one stop shop system, called point VEM, was created in 2009. Point VEM enables entrepreneurs or members of a limited liability company to perform certain actions that they are obliged to perform under law in one place. Services provided include amongst others: registration of companies, entry of companies onto the Court/Business Register, registration of company changes, strike-off of companies, registration of tax data, registration for VAT purposes, obtaining permission to set up a small business and registration of workers for social security purposes. Foreign
16 Introduction
persons are also able to register as a sole proprietor or company on the provision of foreign identity documents and the provision of a valid Slovene tax number.
Introduction 17
and 2014). Any such advance tax payment is treated as a final tax for a nonresident, whilst for residents it is treated as a prepayment of tax. 35. Slovenia has 58 Double Taxation Conventions (DTCs) and 3 Tax Information Exchange Agreements (TIEAs) in place with its main trading partners. It has also signed the OECD/CoE Convention on Mutual Administrative Assistance in Tax Matters. Finally, Slovenia exchanges information with other EU member states under various EU instruments.
Recent developments
36. A bill (the draft Financial Administration Act) including various tax measures was tabled with the Parliament at the end of 2013 and is at the first reading stage. (The first reading is the presentation of the draft law. The second reading involves the debate and voting on individual articles; it also includes modifications and supplementary provisions. The third reading involves the debate and voting on the draft law in its entirety). One of the modifications proposed by this bill is to require foreign companies with sufficient nexus in Slovenia and foreign partnerships carrying on business in Slovenia or deriving taxable income from Slovenia to disclose the identity of their shareholders and partners in the Tax Register. This bill will also include provision for the merger of the Tax Administration and the Customs Administration. It is planned that the bill will be adopted in the spring 2014.
A. Availability of Information
Overview
37. Effective exchange of information requires the availability of reliable information. In particular, it requires information on the identity of owners and other stakeholders as well as information on the transactions carried out by entities and other organisational structures. Such information may be kept for tax, regulatory, commercial or other reasons. If such information is not kept or the information is not maintained for a reasonable period of time, a jurisdictions competent authority may not be able to obtain and provide it when requested. This section of the report describes and assesses Slovenias legal and regulatory framework on availability of information. It also assesses the implementation and effectiveness of this framework in practice. 38. Companies and partnerships (including economic interest groupings) formed in Slovenia must register in the Court Register and Tax Register. Full ownership information on limited liability companies and partnerships is available in these registers. In respect of public limited companies and limited partnerships with share capital, their share registers are maintained by the Central Securities Clearing Corporation, specifically established for that purpose. These registers contain information on the owners of both registered and bearer shares. Foreign companies must also be registered when establishing a branch in Slovenia or when they are managed and controlled in Slovenia. However, no ownership information has to be provided upon registration, nor is such information available otherwise. Similarly, ownership
Companies (ToRA.1.1)
45. The Companies Act (CA) is the central piece of legislation governing the establishment of and further arrangements with respect to companies. Under the CA, the following types of companies may be incorporated: Limited liability companies (druba z omejeno odgovornostjo d.o.o.): companies formed by a contract between one or more persons that become members upon the formation of the company. A company may have a maximum of 50 members and must have a subscribed capital of at least EUR7500. Members are not liable for the liabilities of a limited liability company. As at 30June 2013 there were 64422 limited liability companies registered in Slovenia. Public limited companies (delnika druba d.d.): companies formed by one or more persons that adopt the companys articles of association. The capital is divided into shares and the minimum amount of the capital stock is EUR25000. The shareholders are not liable to creditors for the obligations of the company. As at 30June 2013 there were 841public limited companies registered in Slovenia. Limited partnerships with share capital (komanditna delnika druba k.d.d.): companies in which at least one person is liable for the liabilities of the company with all his assets (general partner) while the limited shareholders who have a share in the subscribed capital are not liable for the liabilities of the company to creditors. As at 30June 2013 there were two limited partnerships with share capital registered in Slovenia.
46. As Slovenia is a member of the EU, it is also possible to establish an SE (Societas Europaea)5, a European public limited liability company, under the CA. The rules that apply to public limited companies apply to SEs as well, unless indicated otherwise.6 As at 30June 2013, no SEs were registered in Slovenia.
5. See Council Regulation (EC) No.2157/2001 of 8October 2001 on the Statute for a European company (SE). 6. Articles5 and 10 of Council Regulation (EC) No.2157/2001 of 8October 2001 on the Statute for a European company (SE).
51. The Bar Association of Slovenia comprises approximately 1600 members (around 160 firms). Lawyers are subject to AML/CFT obligations and thus to the CDD rules on their activities in relation to financial transactions, real estate and the creation of legal entities. Therefore, controls have focused on lawyers and firms that were involved in such activities. In 2012, 27 law firms were subjected to inspection by the Bar Association. During the inspection, all documents are verified, either by on-site visit or off-site document inspection. Customer due diligence, including beneficial ownership is systematically verified. Sanctions that can be applied in case of breach vary from a warning to monetary fines and even to a suspension of Bar membership. The Bar Association established that the vast majority of lawyers inspected complied with all obligations. Few breaches were found, the main breaches found were the absence of internal rules and the lack of appropriate AML training for a firm with more than four employees but no sanctions were applied with respect to their AML/CFT obligations as the breaches were not considered important. 52. All business entities in Slovenia which perform profitable or nonprofitable activities (individuals carrying out business activities, sole proprietors, companies, non-profit organisations, societies and public sector entities and branches of foreign entities that operate in Slovenia) need to be registered with the Business Register by filing an application for entry into the register. Companies, foreign companies and partnerships are registered by the Register Court (which is a District Court) in the Court Register (which, since 2008, has been part of the Business Register), while individuals carrying out business activities and sole proprietors are registered by the Agency of the Republic of Slovenia for Public Legal Records and Related Services (referred to as AJPES) solely in the Business Register. 53. A company obtains legal personality upon its entry in the Court Register (s.5(1) CA). An application for registration must be submitted within 15days of the fulfilment of the conditions for entry in the register, i.e.when all other (legal) formalities for setting up a specific type of company are finalised (s.47(3) CA). The registration procedures are regulated by the Court Register Act in conjunction with the CA. As explained in the Introduction, a one stop shop system has been created to assist limited liability companies and entrepreneurs starting a business fulfil certain legal obligations (registration in different registers, obtaining of licenses etc.) either online or at the VEM office. Not all services are available online and in certain cases these must be performed at the VEM or a notarys office. In all other cases the formation of a company is carried out at a notarys office. 54. The application for entry in the register must include certain specified information, including the registered name, registered office, business address and activity of the entity, the amount of share capital and of each
57. The average time for registration of a company or a partnership (from the submission of the application until the entry in the register) is 2.4days. For entities (for example sole proprietors) that do not require a decision of the Court, registration takes less than a day. Applications are rarely refused, however around 10 % of the applications are incomplete and need additional information in order to be processed. In such cases, the applicant will need to provide the missing information to complete the application; otherwise the application will be rejected. 58. In general, any change in the registered information must be reported for entry in the Court Register within 15days of its occurrence (s.48 CA). With respect to the contract of members or the list of members, changes must be reported within three days (s.478(2) CA). The verification of the information entered into the register is carried out automatically by the registry itself (by the AJPES in charge of managing the Court Register). Investigations, fines for late filing and fines for changes that are not reported in the register are dealt with by the Ministry of Economic Development and Technology. Changes in the identity of the shareholders that are made in other registers (the Central Register of Population and the Tax Register) are automatically reported in the Court Register since the identity information about each shareholder is linked with the register where the information originates. Once the change is made in the original register, there is no need to correct the Court Register, the information is automatically updated. In addition, all information included in the Court Register upon registration is automatically transferred to the Tax Register (see below). Changes made in the Court Register in relation to companies, partnerships, economic interest groupings and branches of foreign companies (except changes that were made in another register linked with the Court Register) must be validated by a decision of the Court. Changes in relation to other entities (for example sole proprietors) do not require a decision of the Court. 59. All business entities need to file an annual report with the AJPES for national statistics purposes, for availability to the public and for tax purposes. The annual report of a business entity must include the annual accounting records and must be filed by the end of March, except for medium and large entities7, for which the filing deadline is eight months after the end of the accounting year since their accounting records must be audited. Medium and large entities represent approximately 3% of entities registered in the Court Register.
7. A company is not a large or medium-sized company if two of the following conditions are met: (i) number of employees does not exceed 50 (ii) net sales income does not exceed EUR8800000 (iii) value of assets does not exceed EUR4400000 (s.55 CA).
(d) the duration of the company if it is formed for a fixed period; and (e) any obligations which the members have towards the company other than payment of the subscribed contribution and any obligations which the company has towards the members. 65. The shares of the members can be disposed of only through a contract in the form of a notary record (s.481(3) CA), and such disposition is only valid after the person who has acquired the shares has reported and demonstrated this to the manager of the LLC (s.482(1) CA). 66. Registration of an LLC in the Court Register is required to obtain legal personality (s.5(1) CA). An application for the first entry in the Court Register must contain the registered name, the activity, the registered office and other data determined by law (s.47(1) CA). Section478(1) CA requires the registration application to be accompanied by the original contract of members or a verified copy, which as stated above contains identification data on all members, as well as a separate list of members and their subscribed contributions. 67. The Court Register Act (CRA) contains provisions confirming that the information to be submitted by an LLC upon registration includes the contract of members (ss.28(1) and 28(a)(1)) and, with respect to the members, the following data (s.4(1)(6)): (i) identification data (name, address and identification number, see s.2(b) CRA); (ii) type and extent of liability for the obligations of the LLC; and (iii) date of entry and, if applicable, date of strike-off. Failure to register and to register any changes is punishable with a fine of between EUR16000 and EUR62000 on the company and between EUR1000 and EUR4000 on the individual responsible for the failure (s.685(1)(3) and s.685(2) CA).
Tax law
77. Under the Tax Administration Act (TAA) the Slovene tax authorities maintain the Tax Register. All legal entities registered in another Slovene register are entered in the Tax Register (s.42(5) TAA). As all companies must be registered in the Court Register, they will also be entered in the Tax Register. Registration is done by the tax authorities ex officio on the basis of the information in the Court Register and other registers (s.45(1) TAA). Some additional information relevant for tax purposes must be communicated separately to the tax authorities.
83. Changes in the information registered with the Court Register, such as changes in ownership information, will be obtained by the tax authorities ex officio from the other registers maintained in Slovenia if available, which is the regular procedure. Any other changes must be notified by the company within 15days of their occurrence (s.47 TAA). Any failure to notify the tax office of changes within 15days will be subject to a fine of between EUR210 and EUR1200 (s.51(2) TAA). Such changes include a change of the person in charge of the bookkeeping, change of bank accounts, change of foreign branches or offices and changes of related parties. 84. The information in the Tax Register is verified by the Tax Administration annually when controlling the tax returns (the requirements under the tax law in respect of corporate tax returns are the same notwithstanding the applicable rate). Corporate tax returns need to be filed three months after the end of the calendar or financial year. As of 31December 2012, there were more than three million taxpayers entered in the Tax Register in Slovenia. 85. Two types of control are performed to verify the tax returns. First a control of calculation, completeness and logic is performed on all returns when the tax return is submitted, and a second in-depth control may be performed after the processing of the return in the system, based on risk indicators. Some particular elements trigger an in-depth verification of the return, such as tax relief claimed, exemption of dividends and exemption of taxes paid abroad. This second verification is made either by the General Tax Office or by the Local Tax Office, is desk based and is carried out with the help of other documents like tax returns from previous years and accounting records. If the situation needs to be further investigated, a proposal is given to carry out a tax audit. The annual report (that includes the accounting records) submitted to the AJPES is considered as part of the income tax return. 86. When a taxpayer fails to submit a corporate tax return within the time limit, the tax authorities invite the taxpayer, by letter or by phone, to submit the return within eight days for corporate tax returns (five days for individual tax return). If the return is not filed after this reminder, a fine for late filing is applied. For the period from 1July 2009 to 31December 2011 (information for the period 1January to 30June 2012 is not available), there were 1730 offences for failure to file a tax return on time and fines were applied amounting to a total of EUR1768500. For the same period, there were 171 offences for incorrect or incomplete information in tax returns, amounting to a total of EUR36800 of fines. The Slovene tax authorities indicated that generally, the level of compliance is satisfactory, while noting some delays that were solved rapidly when a reminder was issued.
employees. Service providers are under the direct supervision of the Office for Money Laundering Prevention, which is also the Financial Intelligence Unit of Slovenia. As the supervisory body, the Office for Money Laundering Prevention conducts off-site inspections and supervises the application and respect of AML/CFT obligations. 92. To conduct the inspection, the Office for Money Laundering Prevention is staffed with 17 employees who can requests any data, information and documents, which must be provided by the service providers within 15days. The inspection is carried out by gathering and verifying the data obtained. During an inspection, the focus is generally on the respect of CDD rules, internal controls and procedures in place, the compliance officer and the training of staff. 93. If a violation of the obligations is detected, the Office for Money Laundering Prevention can apply administrative sanctions to both the reporting entity and the natural person responsible for the violation. Sanctions range from a simple demand to remove the violation, to a request for the implementation of appropriate internal controls, and even to the request for initiation of administrative proceedings (which can lead to a fine up to EUR120000 for a legal person). It is also possible to give a simple warning, but only when the administrative offence is insignificant and if according to the person in charge of the investigation, the warning was a sufficient measure. The Office for Money Laundering and Prevention monitors the situation following the application of sanctions to ensure that the situation is corrected. For the period July 2010 June 2012 no fines were applied, only warnings were issued. There was 29 warnings issued by the Office for Money Laundering Prevention and, generally, the situation was corrected rapidly after the issuance of the warning. Criminal sanctions are also possible under the Criminal Code (sections109 and 245).
Foreign companies
94. Any foreign company that establishes a branch in Slovenia through which it pursues an activity with a view to making a profit must register in the Court Register (s.676 CA and s.3(2) CRA). The application for registration does not include the furnishing of ownership information, but must be accompanied by, among other details, an extract from the register disclosing the content and date of registration of the parent company and a verified copy of the rules or articles of association (s.677(2) CA). It would then depend on the law of the jurisdiction where the company was incorporated whether the register of the companys articles of association contain ownership information.
Nominees
98. Any person acting (or arranging for another person to act) by way of business as a nominee shareholder for another person is considered to be a trust and company service provider under section3(2)(6) PMLTFA. Consequently, such persons are required to carry out CDD when establishing a business relationship and identify the person(s) for whom they act as a legal owner in accordance with sections7-17 PMLTFA. Documentation in respect of the CDD carried out must be maintained by the nominee for at least ten years after the termination of the business relationship with the person for whom they act (s.79(1) PMLTFA). This information must be regularly updated as part of the ongoing monitoring as well (s.22 PMLTFA). Failure to carry out CDD or to maintain the documentation for at least ten years can lead to a fine of up to EUR120000, depending on the seriousness of the offence (ss.91-93 PMLTFA).
99. A specific rule exists in respect of authorised brokerage companies8. When they manage the shares of their clients through their own account, they must keep the following information on their clients: personal name, TIN, permanent or temporary address of a natural person or registered office and registered name of a legal entity (s.247 Financial Instruments Market Act). 100. In addition, section40(1) BESA provides for the registration of certain third-party rights to book-entry shares, i.e.shares entered in the central register held by the Central Securities Clearing Corporation in respect of which the company will meet all obligations to the person that is entered as the legal owner of the share. Public limited companies and limited partnerships with share capital must have shares only in this form. One of the third-party rights that can be registered is a beneficial interest in the shares, meaning the right to the payment of dividends or other returns yielded by the shares (s.49 BESA). Upon registration of such beneficial interest, the name and address or registered office of the beneficiary is entered in the central register (s.40(2) BESA). 101. If a person holds shares on behalf of another person as a nominee not by way of business, the above requirements do not prescribe the availability of ownership information unless this is registered with the Central Securities Clearing Corporation. As this group of nominee shareholders would primarily consist of persons performing services for free or in the course of a purely private non-business relationship, it is likely to be limited. 102. Nominee ownership is regulated by the AML/CFT legal framework in Slovenia and therefore the practices described above also apply in respect of nominee ownership. During the on-site visit Slovene authorities and professionals confirmed the extremely narrow scope of nominee ownership. They reported that non-professional nominees are not likely to exist in Slovenia. No issues were reported with regard to nominee ownership information. Slovenias tax authorities also advised that they have never received any incoming request dealing with nominees but are ready to use their information gathering powers to collect such information if so requested by a treaty partner.
Conclusion
103. All companies incorporated in Slovenia must register in the Court Register and Tax Register. Legal ownership information on limited liability companies is available in these registers. In respect of public limited companies and limited partnerships with share capital full ownership information
8. A brokerage company is a legal entity with its registered office in Slovenia and which is not a bank the regular occupation or business of which is the provision of investment services for third parties or investment activities (s.11 Financial Instruments Market Act).
information on his/her identity is available in the central register and may be obtained by the authorities if necessary (see also PartB of this report). 109. As explained under A.1.1, the obligation that all shares in a public limited company or a limited partnership with share capital must be in book-entry form was introduced when the CA entered into force in May 2006. Public limited companies then had until 1July 2007 (six months from the date of the introduction of the euro) to convert all their shares issued in written form into book-entry shares (s.695(7) CA). The procedure for converting issued shares into book-entry shares is described in section68 BESA, which prescribes that the company must make a conversion decision and publish this decision within 15days in daily newspapers in Slovenia, calling on any shareholders to deliver their shares to the Central Securities Clearing Corporation (ss.68(2) and 68(3) BESA). The time limit for such conversion should not be less than 30days or longer than 90days (s.68(3) BESA). On the day of publication of the conversion decision in the daily newspapers, the shares which are the subject of this decision shall become void and may be used by their holders only as an identity document for exercising their conversion rights (s.68(4) BESA). This means that any bearer shares issued before 1July 2007 that have not been converted into book-entry shares, are now void, as the conversion right ended 90days after that date at the latest. 110. All bearer shares issued in Slovenia are dematerialised securities and information on the holders is therefore registered with the Central Securities Clearing Corporation in the same way as for other shares of public limited companies and limited partnerships with share capital, as explained above. As of 31December 2012, 27 companies had issued bearer shares in Slovenia (26 shares and 2 bonds). Slovenias tax authorities have access to all information on the holders upon request (name, address, and all securities the person holds). Hence, ownership information on bearer shares is available in Slovenia in all instances. During the period under review, no EOI requests in relation to bearer shares were received by Slovenia.
Partnerships (ToRA.1.3)
111. Partnerships are governed by the CA and referred to as personal companies (s.3(3) CA). Like companies, they are legal persons and may therefore own property in their own name (s.4 CA). Two main types of partnerships can be distinguished: General partnership (druba z neomejeno odgovornostjo d.n.o.): also referred to as an unlimited company, it is formed by two or more persons who are liable for the obligations of the partnership with all their assets (s.76(1) CA). As at 30June 2013 there were 1222general partnerships registered in Slovenia.
112. The CA was amended in July 2012 and the concept of Silent partnership was abolished. 113. Finally, an economic interest grouping (EIG, in Slovene: gospodarsko interesno zdruenje) can be founded by at least two companies or entrepreneurs. The aim of an EIG is to facilitate and accelerate the activities carried out with a view to profit by its members and to improve and increase the results of these activities, but not to create a profit of its own (s.563 CA). However, an EIG can, in addition to carrying out tasks for its members, carry out commercial operations for its own account (s.565(2) CA). An EIG is considered a legal entity in Slovenia and its members are liable for the obligations of the EIG with all their assets (s.566(1) CA). As Slovenia is a member of the EU, it is also possible to establish an EEIG (European Economic Interest Grouping).9 The rules that apply to EIGs apply to EEIGs as well, where they are not specifically regulated by EU legislation (s.577(2) CA). As at 30June 2013 there were 162 EIGs and 3 EEIGs registered in Slovenia. 114. Both general and limited partnerships as well as EIGs/EEIGs acquire legal personality upon registration in the Court Register (ss.5(1), 565(1) and 578(1) CA). The following particulars must be submitted upon registration (ss.78 and 136 CA and ss.4(1) and 5(5) CRA): (a) the registered name or business name of the partnership or EIG/ EEIG; (b) the location of the head office and its business address; (c) the legal form; (d) the name, address (or registered office in case of a company) and the unique identification number10 of each partner or member; (e) in case of a limited partner, the amount of the contribution to the capital of the partnership; and
9. See Council Regulation (EC) No.2137/85 of 25July 1985 on the European Economic Interest Grouping. 10. The unique identification number is: (i)for natural persons entered in the central population register: the personal identification number, (ii) for legal persons entered in the Business Register: the company registration number, and (iii) for other persons: the tax number (s.1a(3) CRA).
(f) the date of the partnership contract or EIG/EEIG founding contract and its duration if it is established for a fixed period. 115. In respect of partnerships, any change in the registered information must be reported for entry in the Court Register within 15days of its occurrence (s.48 CA). Failure to register and to register any changes is punishable with a fine of between EUR16000 and EUR62000 on the partnership and between EUR1000 and EUR4000 on the individual responsible for the failure (s.685 CA). In respect of EIGs/EEIGs, changes in the registered information must also be reported within 15days (ss.6 and 53(1) CRA). Failure to register and to register any changes may lead to a fine of EUR1600 on the EIG/EEIG and a fine of EUR600 on the individual responsible for the failure (s.53 CRA). 116. In Slovenia, partnerships and EIGs/EEIGs are legal entities subject to the same registration obligations as those described above for companies. In order to obtain legal personality, they have to register with the Court Register by submitting an application for registration within 15days of the fulfilment of the conditions for entry in the register, i.e.when all other (legal) formalities for setting up have been completed. 117. Ownership information must be provided upon registration, including an official identification number: the personal identification number from the Central Register of Population for individuals resident in Slovenia, and the registration number from the Business Register for Slovene legal entities. The identification of the shareholder is linked with the database of the appropriate register where the identification information is recorded. For individuals or legal entities non-resident in Slovenia, they first need to register with the Tax Register in order to obtain a tax number to complete the application for registration. 118. The information provided upon registration is verified by the AJPES and a decision of the Register Court is needed for Partnerships and EIGs/ EEIGs. All changes made in the Court Register concerning a partnership or EIGs/EEIGs must be validated by the Court. Changes made to other registers connected to the Court Register do not need this Court decision and such changes to other registers are automatically transferred to the Court Register.
Tax law
119. All legal entities registered in another Slovene register are entered in the Tax Register (s.42(5) TAA). As all partnerships and EIGs/EEIGs must be registered in the Court Register, they will also be entered in the Tax Register. Registration is done by the tax authorities on the basis of the information in the Court Register and other registers (s.45(1) TAA). Some additional information relevant for tax purposes must be communicated separately to the tax authorities. The list of information that should be included in the Tax Register
Foreign partnerships
122. Any foreign partnership that establishes a branch in Slovenia through which it pursues an activity with a view to making a profit must register in the Court Register (s.676 CA and s.3(2) CRA). There is no specific requirement to furnish ownership information upon registration, but the application must be accompanied by a verified copy of the rules or articles of association (s.677(2) CA), which might include details on the identity of the partners. 123. If a foreign partnership carries on business in Slovenia or derives taxable income, it will be required to submit a tax return (s.356 TPA). However, this tax return does not have to contain information on all the partners as the partnership is taxable in its own right. Ownership information on foreign partnerships carrying on business in Slovenia or deriving taxable income is therefore not consistently available, and it is recommended that Slovenia ensures the availability of ownership information in such cases.
Conclusion
124. All general and limited partnerships as well as EIGs/EEIGs formed under Slovene law must be registered in both the Court Register and the Tax Register. Upon registration details of all partners or members must be submitted. Any changes must be notified within 15days. Updated ownership information on partnerships and EIG/EEIGs is therefore contained in the Slovene tax authorities own Tax Register. Ownership information on foreign partnerships carrying on business in Slovenia or deriving taxable income is not consistently available.
125. Registration requirements for partnerships and EIG/EEIGs are exactly the same as registration requirements for companies described under SectionA.1.1., as confirmed by Slovenias authorities. The practical application of the legal requirements is effective. The practical standards that are enforced by the registration and tax authorities are such that ownership and identity information in respect of partnerships and EIG/EEIGs is available, is verified and easily retrievable, and hence, is in line with the standard set out in the Terms of Reference (except for foreign partnerships carrying on a business in Slovenia or deriving taxable income in Slovenia). There are no foreign partnerships carrying on a business in Slovenia or deriving taxable income in Slovenia and no EOI requests in relation to partnerships were received during the period under review.
Trusts (ToRA.1.4)
126. It is not possible to form a trust under Slovene law and there is no domestic trust legislation. Slovenia is also not a signatory to the Hague Convention on the Law Applicable to Trusts and their Recognition. However, there are no restrictions for a resident of Slovenia (other than a notary) to act as a trustee or administrator of a trust formed under foreign law. Slovene authorities have indicated that they are not aware of any person in Slovenia acting at present as a trustee or trust administrator of a foreign trust.
Tax law
131. Residents of Slovenia are taxed on their worldwide income from whatever source. This means that trustees or trust administrators of foreign trusts who reside in Slovenia and receive income earned by the trust are subject to income tax on that income as if it was their own income. The assets and income of the trust are subject to tax as any other assets or income of the trustee and should therefore be declared in their tax return. Distributions to beneficiaries may be regarded as expenses. Resident trustees or trust administrators may only avoid such a tax liability by demonstrating that the income should be attributed to another person, such as by providing evidence of the existence of a fiduciary relationship (typically the trust deed) and disclosing the identity of the settlor(s) and beneficiaries to the tax authorities. In addition, any person resident in Slovenia is required to keep records relevant to their tax liability in Slovenia and provide such records to the tax authorities (ss.31, 39 and 41 Tax Procedure Act).
Conclusion
132. Although the concept of a trust is not recognised in Slovenia, residents may act as a trustee or trust administrator of a foreign trust. Beneficiaries of more than 25% of the trust property must be identified by professional trustees according to AML/CFT legislation. In addition, the Slovene tax rules attribute the income of a foreign trust to the resident trustee or trust administrator, unless that person can prove otherwise. The
combination of the obligations under AML/CFT legislation and the general tax obligations to maintain and submit information to the tax authorities, permit that information regarding the settlors, trustees and beneficiaries of foreign trusts is available to the Slovene tax authorities. It can therefore be concluded that Slovenia has taken reasonable measures to ensure that ownership information is available to its competent authorities in respect of express foreign trusts with a trustee or trust administrator resident in Slovenia. 133. The AML/CFT rules that apply to service providers also apply to trustees acting in a business capacity. Therefore they are subject to CDD rules, they are supervised directly by the Office for Money Laundering Prevention and subject to the inspection process of the Office for Money Laundering Prevention as described above for service providers. 134. However, the Slovene authorities have reported that trustees and trusts are not known to exist in Slovenia. During the period under review (July 2009 to June 2012), Slovenia did not receive any EOI requests relating to trusts, and therefore has no experience in this regard. Professionals in Slovenia are not known to have any experience in dealing with trusts. Similarly, non-professional trustees are not known in Slovenia. The Slovene tax authorities stand ready to answer any incoming requests received in relation to these arrangements.
Foundations (ToRA.1.5)
135. Foundations (ustanova) are regulated by the Foundations Act (FA). A foundation is a legal entity (s.1 FA). Foundations are only allowed to serve beneficial or charitable purposes (s.2 FA). The purpose of a foundation is beneficial if the foundation has been established for purposes in the fields of science, culture, sport, education and training, health care, child and disabled care, social welfare, environmental protection, conservation of natural resources and cultural heritage, or for religious purposes and similar. The purpose of a foundation is charitable if it has been established for the purpose of helping persons who are in need of such help. The income of a foundation shall be spent exclusively for the implementation of the purpose and the operation of the foundation (s.27 FA). A foundation may not be created to benefit named individuals or only members of a family (s.2 FA). Foundations are governed by a Board of Trustees, consisting of at least three members, but may have other bodies as well (ss.21 and 22 FA). 136. Upon approval of the deed of establishment, the foundation will be registered in the Register of Foundations (s.13 FA). This register, including the deeds of establishment, is public. It contains, among other information, details on the founders and of any person who is authorised to represent the foundation (such as the members of the Board of Trustees) (s.14 FA). Any
Interior such as Central Population Register and other personal registers as well as to the Register of Spatial Units, operated by the Surveying and Mapping Authority of the Republic of Slovenia, which is very useful in relation to the availability of data concerning authorised persons representing the foundation, seat and address of the foundation and all the data are updated. The data from the Register of Foundations are automatically transmitted to the Business Register operated by AJPES. The personal data from the Business Register are also connected to other registers containing personal data to keep them accurate (Central Population Register, Court Register, Tax Register). 141. Changes in the information in the Register of Foundations must be notified within 30days. Some specific information, such as the name of the foundation, seat, purpose of the foundation or a decrease in the founding capital, must receive approval from the relevant Ministry before being effective and reflected in the Register of Foundations. 142. Every foundation must file an annual report to its relevant Ministry on its work and financial operations, which includes accounting information. The report is verified by the relevant Ministry who can request additional information from the foundation. If a problem is detected, the relevant Ministry can launch an audit, apply fines for violation of the obligations (for instance if the purpose of the foundation is not respected or a change has not been reported) or even dismiss the directors. For the period under review, all changes and reports were filed on time or after a reminder (no statistics exist on reminders sent), therefore no enforcement measures have been taken. 143. Given Slovenias legal requirements and practices in relation to foundations, identity information is available. The Slovene tax authorities have not reported any specific concerns as regards the availability of identity information in relation to foundations for the period under review. During the period under review, no EOI requests in relation to foundations were received by Slovenia.
150. Trustees and trust administrators are required to collect and maintain certain ownership and identity information regarding the trust under AML/ CFT legislation. Failure to do so can lead to a fine in the following range: Minor offences (s.93 PMLTFA): between EUR3000 and EUR30000 on a legal entity, between EUR200 and EUR1000 on the individual responsible within the legal entity and between EUR1000 and EUR10000 on a sole proprietor or self-employed person. Serious offences (s.92 PMLTFA): between EUR6000 and EUR60000 on a legal entity, between EUR400 and EUR2000 on the individual responsible within the legal entity and between EUR2000 and EUR20000 on a sole proprietor or self-employed person. Most serious offences (s.91 PMLTFA): between EUR12000 and EUR120000 on a legal entity, between EUR800 and EUR4000 on the individual responsible within the legal entity and between EUR4000 and EUR40000 on a sole proprietor or self-employed person.
151. Failure to carry out CDD is regarded as a most serious offence (s.91(1)(2) PMLTFA). Failure to keep the information collected for at least 10 years is regarded as a serious offence (s.92(1)(20) PMLTFA). The Office for Money Laundering and Prevention is not able to provide any statistics on measures and sanctions applied to trusts since the concept of trust is not recognised in Slovenia (except under AML legislation) and the authority is not aware of any trust in Slovenia. For other professionals under the direct supervision of the Office for Money Laundering and Prevention (such as tax advisors and service providers), no fines were applied and 29 warnings were issued during the period July 2010-June 2012. 152. Any person resident in Slovenia, including a person acting as a trustee of a foreign trust, is required to keep records relevant to their tax liability in Slovenia and provide such records to the tax authorities (ss.31, 39 and 41 Tax Procedure Act). Any failure to do so is punishable by a fine ranging between EUR800 and EUR10 000 on a sole proprietor or self-employed individual, a fine ranging between EUR1200 and EUR15 000 on a legal person and a fine ranging between EUR3 200 and EUR30000 on a medium or large company (s.397 (10) TPA. 153. Given that the concept of trust is not recognised in Slovenia (other than under AML law) and given that the Slovene authorities indicated that they were not aware of any trust existing in Slovenia, no enforcement measures were taken with regard to trustees and trusts. With regard to the application of the legal requirement to keep records relevant to the tax liability in Slovenia applicable to other persons (ss. 31, 39 and 41 of the Tax Procedure Act), 211 penalties were applied (for a total of EUR162000 and 10 reminders) for both individuals and legal entities, during the period under review.
Conclusion
157. Enforcement provisions are in place in respect of the relevant obligations to maintain ownership and identity information for all relevant entities and arrangements. Different penalties can be imposed on the entity itself and on the individual responsible for the failure, except in respect of keeping a share register in respect of public limited companies and partnerships limited by shares. However, these share registers are not kept by the entities themselves, but by an entity established by law, which is supervised by the Securities Market Agency, which can also apply enforcement measures.
There is a variety of possible sanctions provided by Slovenias laws depending of the level of the infraction. Each requirement to maintain ownership information is complemented by sanctions. Slovenias authorities have confirmed that the application of sanctions, when necessary, has a deterrent effect and rarely needs to be repeated. The enforcement provisions to ensure the availability of ownership information appear to be dissuasive enough to ensure the legal requirements are respected.
Determination and factors underlying recommendations
Phase1 determination The element is in place. Factors underlying recommendations Ownership information on foreign companies having sufficient nexus with Slovenia (in particular, having their place of effective management in Slovenia) and on foreign partnerships carrying on business in Slovenia or deriving taxable income is not consistently available. Recommendations Slovenia should ensure that ownership information on foreign companies with sufficient nexus with Slovenia (in particular, having their place of effective management in Slovenia) and on foreign partnerships carrying on business in Slovenia or deriving taxable income is available in all cases.
158. The Terms of Reference sets out the standards for the maintenance of reliable accounting records and the necessary accounting record retention period. It provides that reliable accounting records should be kept for all relevant entities and arrangements. To be reliable, accounting records should: (i)correctly explain all transactions; (ii)enable the financial position of the entity or arrangement to be determined with reasonable accuracy at any time; and (iii)allow financial statements to be prepared. Accounting records should further include underlying documentation, such as invoices, contracts, etc. Accounting records need to be kept for a minimum of five years.
end of the financial year (ss.54(1) and 54(2) CA). The annual report must at a minimum contain a balance sheet and profit and loss statement (s.60(3) CA). The balance sheet must set out the balance of assets and liabilities at the end of the year and the profit and loss account must set out the income, expenses and operating result in the financial year (ss.60(4) and 60(5) CA). Partnerships must also submit their annual report to AJPES for publication (s.58(2) CA). 164. As trusts are not recognised in Slovenia, there are no accounting rules specifically applicable to trusts. Trustees must, however, keep records under tax law and AML/CFT legislation (see below).
Accounting Act
165. Under the Accounting Act (AA) all legal entities not keeping books of account in accordance with another act (most notably the Companies Act) must keep books of account and prepare annual reports (ss.1 and 2 AA). Such entities must prepare financial statements and operations reports for the financial year that must coincide with the calendar year (s.11 AA). The financial statement must present a true and fair value of assets and liabilities, revenues and expenses and profit or loss, and shall comprise the balance sheet and the profit and loss statement (s.20 AA). An annual report must also be prepared and must contain, in addition to the financial statement, notes to the financial statement and a business report (s.21 AA). EIGs/EEIGs, co-operative entities and foundations are covered by the AA, as they are legal entities in Slovenia. Under section55 of the Accounting Act penalties for non-compliance can be imposed on a legal entity in the event of the following: a failure to keep books of accounts according to double-entry accounting method; for financial statements that fail to give a true representation of assets and liabilities, revenues, expenses and profit or loss; a failure to keep accounting documents and books of accounts; a failure to value items in financial statements in accordance with accounting standards.
166. These failures can result in a fine of between EUR417.29 and EUR25037.56. In addition, a fine of between EUR41.73 and EUR2 086.46 may also be imposed upon the responsible person of the legal entity (s. 55 AA). In addition, in respect of foundations, the obligation to keep books of account and produce annual reports is also included in section30 FA. A foundation that does not keep books of account in accordance with the law is subject to a fine ranging from EUR834.59 to EUR16691.70 (s.35 FA). The individual responsible for the offence may be imposed with a fine between EUR208.65 and EUR1043.23 (s.35 FA).
on the extent of their activity (s.1 Rules on Books of Account and Other Tax Records for Natural Persons carrying out a Business Activity). At a minimum, natural persons must keep all documents affecting their tax liability (s.41 TPA). 170. If companies, partnerships, EIGs/EEIGs, co-operative entities, foundations or natural persons act as trustees of foreign trusts, the income earned by the trust is subject to income tax in the hands of that person, unless they demonstrate that the income should be attributed to another person. A trustee will therefore generally be required to maintain records in respect of all transactions in relation to the trust and substantiate the value of assets in order to meet tax requirements. The obligation to keep accounting records for tax purposes under sections31 and 41 TPA would therefore also cover the accounting records of a foreign trust with a trustee resident in Slovenia.
AML/CFT legislation
171. Under sections7 and 8 PMLTFA service providers are required to conduct CDD and in that process records of transactions should be collected (s.83 PMLTFA). This would encompass only transactions which the service provider is involved in and this is therefore generally not sufficient to cover all relevant books, records and documentation. The transaction records must be kept for a period of at least ten years after the termination of the business relationship or the completion of a transaction (s.79(1) PMLTFA). Failure to do so can result in a fine of up to EUR120000, depending on the seriousness of the offence (ss.91-93 PMLTFA). 172. In practice, in Slovenia, financial statements are filed with the AJPES by all business entities (including companies, foreign companies, partnerships, foreign partnerships, EIG/EEIGs individuals carrying on a business) with their annual report. Financial statements for banks must also be filed with the Bank of Slovenia where they are verified. Foundations must file their financial statements both with the AJPES and with their annual report to the relevant Ministry. 173. The annual report of a business entity needs to be filed with the AJPES at the end of March, except for medium and large entities, for which the filing deadline is eight months after the end of the year since their accounting records must be audited. Foundations must also file their annual report no later than 28February. 174. If an annual report is not filed in due time, a warning is issued first, giving an additional five days to file the annual report. If the report is not filed after the warning, then a fine is applied. For 2009, 5.4% of the annual reports were not filed on time, 5% of the annual report for 2010 were not filed on time, 4.4% in 2011 and 4.5% in 2012. Approximately 99% of the missing reports were filed after a warning or a fine.
accordance with the International Financial Reporting Standards (ss.54(10) and 54(11) CA). As the International Financial Reporting Standards form the basis for the SAS, it is expected that listed companies, banks and insurance companies also maintain underlying documentation. 180. In addition, section54(6) CA states that companies and partnerships need only store accounting documents for a specific period. The term accounting documents is not defined but it is distinct from books of account, balance sheet, profit and loss account, annual report and business report. A similar distinction is made in section30 AA that applies to EIGs/EEIGs, co-operative entities and foundations. This distinction could be interpreted in such a way that the term accounting documents refers to underlying documentation. The Slovene authorities have confirmed that they do interpret accounting documents to mean underlying documentation. 181. Finally, the accounting records of entities that are subject to audit should contain underlying documentation in order for the auditor to be able to verify the records. The accounts of large and medium-sized companies and of companies the shares of which are traded on a regulated market must be audited (s.57 CA). 182. The requirements in the SAS, section54(6) CA and section30 AA (together applying to companies, partnerships, EIGs/EEIGs, co-operative entities and foundations) appear to establish an obligation to keep underlying documentation. The same applies where a person carries on business as the trustee of a foreign trust as the obligation under tax law to keep accounting records for that purpose refers to the CA (s.31 TPA). However, the Phase1 assessment found that the requirements were worded in a general way and did not go into detail regarding the type of underlying documentation to be kept. The Phase1 assessment concluded that this could result in an uneven application of the obligation to keep underlying documentation. It was therefore recommended that Slovenia clarifies the legal requirements to keep all underlying documentation in respect of all relevant entities and arrangements. 183. However, Slovene authorities have confirmed that the requirements to provide details regarding the type of underlying documents to be kept were clearly expressed in section21 SAS and suggest that this conclusion was reached only because this piece of legislation was not available to the assessment team during the Phase1 assessment. Slovenia realised during the PRG meeting that this section would have been important to avoid the recommendation but decided that it was too late to open this issue at that stage. 184. After the review of section21 SAS that was provided by the Slovene authorities during the Phase2 evaluation, it is concluded that the obligation to keep underlying documentation is clear enough and the type of information to be kept is detailed. The Phase1 recommendation is therefore removed.
records must be kept by Slovene entities and the practices of the authorities are fully consistent with the Terms of Reference.
Conclusions
190. Companies (including foreign companies), and partnerships and co-operative entities are required to keep accounting records under both the Companies Act and tax law. EIGs/EEIGs and foundations must keep accounting records under the Accounting Act and the tax law. Trustees of foreign trusts must keep accounting records for tax purposes as well, because they are subject to tax on the trusts income. 191. Obligations exist for all entities and arrangements to keep underlying documentation, under the Companies Act, the Accounting Act and the SAS. In addition, the retention period under tax law, which applies to all relevant entities, is connected to the statute of limitations, which is set at ten years. In respect of individuals who act, not by way of business, as a trustee of a foreign trust, the retention period for records is five years.
Determination and factors underlying recommendations
Phase1 determination The element is in place. Phase2 rating Compliant
192. Banking services may be provided in Slovenia only by banks, or branches of foreign banks, which obtained authorisation from the Bank of Slovenia (or in the case of a branch of a bank of another EU member state, authorisation by the relevant competent authority of that other EU member state) to do so (s.33 Banking Act). As at July 2013, there were 18 banks, 3 savings banks and 3 branches of foreign banks active in Slovenia. 193. It is specifically provided that banks or other organisations may not open, issue or keep anonymous accounts, passbooks or bearer passbooks, or other products enabling the concealment of the customers identity (s.35 PMLTFA).
transactions and for other purposes in connection with the provision of banking services for the user (s.13 PSSA). Banks must, among some other information, provide the following information to AJPES on transaction accounts on a daily basis (s.144 PSSA): (a) name, surname and address of the holder who is a natural person, or firm, head office and address of the transaction account holder who is a legal person, or firm, head office, address, name and surname of the transaction account holder who is a sole proprietor or private citizen, or name and address of another transaction account holder; (b) tax number of the holder, if the holder is entered in the Tax Register in accordance with the Act regulating the Tax Register; (c) identification number of the holder or country of residence of the holder, if the holder is not entered in the Tax Register in accordance with the Act regulating the Tax Register; (d) registration number of the holder who is a legal person, sole proprietor or private citizen, if the holder is entered in the Business Register of Slovenia; (e) account number; and (f) opening and, if applicable, closing date of the account. 199. The register of transaction accounts is publicly available, although not all information is accessible to the public because of rules regarding privacy (s.146 PSSA). Information on specific transactions is not available in the register, but this information must be kept by banks under the PMLTFA as described above. 200. In Slovenia, banks are subject to AML/CFT obligations, including CDD measures such as the identification and verification of a customers identity, determining the ultimate beneficial owner, obtaining data on the purpose and intended nature of the business relationship and regular ongoing monitoring. CDD measures are required when a business relationship is established with a customer, when a transaction amounting to EUR15000 or more is carried out (in a single operation or in several operations that are linked), when there are doubts about the veracity and adequacy of previously obtained data about the customer or the beneficial owner, and whenever there is a suspicion of money laundering or terrorist financing, regardless of the amount. 201. Banks as well as Slovenian branches of banks from other jurisdictions are authorised to directly perform banking services in Slovenia and are supervised by the Bank of Slovenia which, besides prudential supervision, also supervises banks compliance with AML/CFT obligations. The Bank
imposes measures such as recommendations, warnings, orders to eliminate the deficiency, orders with additional measures. The purpose of such measures is to improve risk management systems within the bank. In the case of serious deficiencies the Bank of Slovenia can appoint a special administration to the bank, withdraw the licence or liquidate the institution but these types of measures have not yet been used for the purpose of AML/CFT. In most cases of AML/CFT deficiencies, warnings and different types of orders have been imposed. Under the PMLTFA the Bank of Slovenia has also the power to issue administrative sanctions (fines) on the responsible person. Recommendations can be made, but this is not the usual practice in relation to AML/CFT matters. 208. Statistics provided by the Bank of Slovenia show that one regular inspection was carried out by the Bank of Slovenia during the second half of 2009, five regular, one follow up, two extraordinary and one thematic inspections were carried out in 2010, three regular and six follow up inspections were carried out in 2011 and one regular and five follow up inspections were carried out in the first half of 2012. The two extraordinary inspections carried out in 2010 referred to specific customers. In one case an inspection was provided on the basis of information received from the Slovene Financial Intelligence Unit. 209. With regard to sanctions (which are in relation to identified deficiencies with regard to ultimate beneficial owners), one warning was issued in the second half of 2009, five warnings were issued in 2010, three orders to eliminate violations were issued in 2011 and one in the first half of 2012. While the Bank of Slovenia has power to issue other administrative sanctions (fines), these have not been required in practice. 210. The Bank of Slovenia indicated that banking supervision is the most important part of its work. It also mentioned that the situation in banks with regard to the respect of AML/CFT obligations was improving and banks were rapidly correcting the situation when deficiencies were identified. The relationship between banks and the Bank of Slovenia is good. Close co-operation between supervisor and the banking industry is ensured via an/the AML committee established within the Banking Association. The Banking Association and AML committee organise activates such as: training for banks, workshops on different issues, annual conference of AML compliance officers.
Conclusion
211. The customer identification obligations and record keeping obligations on transactions require banking information to be available in Slovenia for all account holders. In addition, certain information on transaction accounts is available through a public register. Slovenias AML/CFT
B. Access to Information
Overview
213. A variety of information may be needed in respect of the administration and enforcement of relevant tax laws and jurisdictions should have the authority to access all such information. This includes information held by banks and other financial institutions as well as information concerning the ownership of companies or the identity of interest holders in other persons or entities. This section of the report examines whether Slovenias legal and regulatory framework, and its implementation in practice, gives to its competent authority access powers that cover all relevant persons and information, and whether the rights and safeguards that are in place would be compatible with effective exchange of information. 214. The access powers available to the Slovene tax authorities are derived mainly from two separate provisions. Information can be obtained from legal entities and individuals carrying on business either automatically, upon written request or through a visit of a tax officer to the business premises. When information must be obtained from individuals who do not carry on business, the tax authorities can do so by request. 215. There are two main provisions in the TPA that provide for access to information. One of these provisions provides that information can be obtained from companies (including banks), partnerships, foundations, selfemployed individuals and other government authorities. The other provision provides for information gathering powers in respect of individuals not performing self-employed activities. Together, these provide sufficient information gathering powers in respect of all individuals and entities in Slovenia. 216. Over the three years of the review period, Slovenia received 74 EOI requests. The requests for exchange of information both to and from Slovenias EOI partners vary in complexity and cover a wide range of material. To answer these requests, Slovenias authorities use their broad access powers to collect this information either by letter, directly on the premises of the businesses or through a tax audit. Based on comments received from its
219. Under Slovenias information exchange agreements the Ministry of Finance or its authorised representative is the designated competent authority. Section265 of the Tax Procedure Act (TPA) provides that the Ministry of Finance may authorise the Tax Administration of Slovenia to carry out the task of actual exchange of information. The Tax Administration of Slovenia has been so authorised under the Rules implementing the TPA (section86).
16March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures. 221. The International Information Exchange Unit (the Unit) of the Department for Tax Supervision, International Information Exchange and Tax Register, is part of the General Tax office and has been designated as the central liaison office (CLO). It acts as the point of contact for competent authorities of other jurisdictions. The Unit has existed since 1999 and comprises seven employees (one Head of Unit, four senior advisers, one adviser and one analyst). Within the Unit, in addition to the Head of Unit, one person is in charge of EOI for direct taxation, one person is in charge of spontaneous EOI, two persons for automatic exchange, one person is in charge of VAT and one person is responsible for requests on recovery. 222. The Slovene competent authority is identified on the internet site of the Slovene Tax Administration, on the EU and OECD websites, and contact details of the Slovene competent authority are provided to the European Commission and to the competent authorities of Slovenias treaty partners. 223. The Slovene Tax Administration is divided into one General Tax Office, one Special Tax Office13 and 15 Local Tax Offices. Requests received are processed by the Unit, with the help of the Special Tax Office (for entities under its supervision) and Local Tax Offices when the information is not directly available at the level of the General Tax Office. The processing of incoming requests will be further described under sectionC.5 of this report.
13.
The Special Tax Office (Large Business Office) is in charge of: banks, savings banks, insurance companies, companies, which organise classic permanent games of chance and special games of chance, companies, which organise special games of chance in gambling halls, stock exchanges, bourse brokerage companies, investment companies, management companies, pension companies and central securities clearing corporations. The Special Tax Office is also in charge of companies, whose total revenues in the previous tax year exceeded EUR50million. The Special Tax Office also performs tasks related to the audit of gaming.
14.
As a general rule, a person is affiliated with another person if one person holds an ownership interest of at least 25% in the other person or if the same person holds an ownership interest of at least 25% in two different persons (s.16 Personal Income Tax Act and s.16 Corporate Income Tax Act).
Information gathering in practice Information directly available to the International Information Exchange Unit
230. In Slovenia, the International Information Exchange Unit (the Unit), which is part of the General Tax office, has direct access to a wide range of information to answer incoming EOI requests. When the information is already directly available to the Unit, further inquiry is not necessary and the request is processed and answered directly by the Unit in less than a month. 231. The Unit has access to all tax information available to the Tax Administration, including information from the Tax Register, information from direct tax (individual and corporate) and VAT returns, the value added tax information exchange system, information pertaining to taxes on profit, property sale tax, gift and inheritance tax, withholding tax, data on audit and tax investigations and information received or exchange with other jurisdictions. 232. The Unit has access to the Tax Register which is managed by the Tax Administration and contains information received from databases maintained by other government authorities: the Court Register, the Central Population Register, the Health Insurance Register (information on employment such as the name of the employer, date and nature of employment), the Register of Spatial Units (information on address and postal code), the Register of transaction accounts and transaction account holders see SectionA.1 above);
In addition the Unit has access to the other databases maintained by other government authorities, including: the Register of Foundations, the Real Estate Register (information on ownership, value and type of immovable properties); the Land Register (current and historical data about ownership, information on liens and mortgage); information held by the Customs Administration (data on the total value of import and exports and data on decisions issued by the Custom Administration concerning VAT refund); information held by AJPES (information on procedural acts and insolvency proceedings of the entity bankruptcy, liquidation information from balance sheet and profits and loss accounts, information about transactions and balance on bank accounts);
233. All other information that is available to another government agency and that is not directly available to the Unit must be provided to the Unit upon request (s.39(1) TPA), such as information from the Central Securities Clearing Corporation (for ownership information of public limited companies and limited partnerships with share capital, including ownership information on holder of bearer shares), and the database of credit rating reports.
Collection process
234. Whilst much information is already available to the Unit, in the majority of cases, the EOI requests are transferred to the Local Tax Office or the Special Tax Office in charge of the person concerned identified in the request. These offices are responsible for collecting the information from the person concerned or from third parties. Each Local Tax Office, as well as the Special Tax Office has a person designated as contact person for EOI, who is responsible for overseeing EOI requests and communicating with the Unit. When a request is transferred to the Local Tax Office/Special Tax Office, it is transferred to this contact person. The request is assigned to a local agent based on availability of the staff within the Local/Special Tax Office. 235. The collection process is taken care of by the Local/Special Tax Office in charge of the person concerned. The information can be collected by letters, by on-site visits (used in practice for legal entities only) or by way of a tax audit, depending of the type of information requested. In practice, tax audits are generally performed. There is no specific timeframe given to the person concerned or to the person in possession of the information to answer the letter requesting the information. The deadline to provide the information is decided by the agent in charge of the request, it depends on the information needed and is generally around a few days. Slovenias authorities have confirmed that the information is provided on time in the vast majority of cases. 236. The decision to collect the information from the person concerned, from a third party in possession of the information or from both belongs to the local agent in charge of the request and depends, amongst other things, on the type of information needed (bank information is generally requested from the bank). 237. If the person concerned or the third party in possession of the information fails to provide the information requested within the allocated timeframe, the local agent in charge of the request sends a reminder or can decide to collect the information from another person in possession of the
information. Fines can be applied for failure to provide the requested information in such circumstances, although no such fines were applied during the period under review, as the information was obtained in all cases (from the person requested). See sectionB.1.4 below for penalties applicable for failure to provide the information. 238. Slovenia indicated that during the period under review, the answer was provided directly by the Unit to 15% of requests received. However, in most cases the request had to be transferred to the Local Tax Office/Special Tax Office for collection (78% of the cases) or the information was requested from another governmental authority (7% of the cases). 239. In sum, Slovenias tax authorities have several tools to collect information requested by a treaty partner. All these tools are flexible and can be used and this gives broad assurance that Slovenia will be in position to provide information on request. In practice, Slovenias authorities have confirmed that these measures are efficient as they are able to collect the requested information in all instances. This is also confirmed by Slovenias treaty partners.
Bank information
240. Banks must have the legal form of a public limited company and they are therefore required to provide information to the tax authorities under section39(1) TPA. As payment service providers banks are also required to provide on an automatic basis data on transaction accounts of persons and inflows on those accounts as is necessary for tax collection (s.37(2) TPA). As described in sectionA.3 of this report, most of this information (but not on inflows) must also be provided to AJPES for registration. 241. In Slovenia, banks need to report information on bank accounts to the Register of Transaction Accounts and Transaction Account Holders which is linked to the Court Register, and to which the Tax Administration and the Unit have direct access. Therefore, Slovenia can answer a request that only provides the bank account number as other information (name of the bank, name of the account holder) is available in both the Court Register and the Register of transaction accounts and transaction account holders. Slovenia can also answer a request when the bank account number is not mentioned provided the request includes information to identify the account holder. 242. The collection of bank information is carried out under the same process as explained above. The information that is not available to the Unit can be collected either from the person concerned, directly from the bank or from both. In practice, bank information is generally requested directly from the bank. During the period under review, five EOI requests received were in relation to bank information. In all cases the information was collected from the bank and provided on time by the banks and the Competent Authority to its partners.
Conclusion
243. The access powers available to the tax authorities provide them with the possibility to request information from all companies, partnerships and foundations on the basis of section39(1) TPA. This section also provides the powers to obtain information from self-employed individuals and other government authorities. In addition, information which is in the possession of foreign affiliated persons may be obtained from the persons covered by section39(1) TPA. Finally, section41 TPA provides the power to obtain information from individuals who are not self-employed. It can be expected that most information will be obtained under section39(1), as information that is the subject of an information exchange request will mostly be in the hands of persons other than individuals not performing self-employed activities.
248. In the previous version of section39 TPA, a second paragraph was included clearly stating that these powers could also be applied by the tax authorities pursuant to a valid international agreement binding on Slovenia. However, this precision did not exist in sections40 (information requested from affiliate persons) and 41 TPA which created ambiguity on whether a domestic tax interest existed with regard to sections40 and 41 TPA since a similar paragraph was not included in these two sections. 249. In order to clarify the situation and considering that paragraph2 of section39 TPA was not necessary for the interpretation of section39(1) TPA, Slovenia amended the TPA by deleting section39(2) TPA. As a result, sections39, 40 and 41 are now similarly drafted without any specific reference to international agreements, thus there is no longer any uncertainty with regard to the interpretation of these three sections. 250. Pursuant to section8 of the Constitution and to section2 of the TPA that states that The tax authority shall proceed pursuant to this Act [] when providing assistance in the collection of taxes or exchange of information with other EU Member States, or in implementing the international treaties binding upon the Republic of Slovenia, it is now clear that information foreseeably relevant to the enforcement of the domestic tax laws of the treaty partner can be obtained and exchanged as if it were information regarding a Slovene tax obligation, hence it is clear that Slovenia can use all of its access powers for EOI purposes. Furthermore, no requests for EOI have ever been turned down because of a domestic tax interest requirement.
when this is stipulated by the law (s.215(2)(5) Banking Act). The reference to the law does not refer to the Banking Act itself, as in those cases reference is made to this Act. The obligation to provide the tax authorities with information under section39 TPA (as described under B.1.1) acts as such exception, as it obliges banks to provide information without any reservation, while the Banking Act does contain a reservation. It is also noted that some bank information must be provided on an automatic basis to the tax authorities on the basis of section37 TPA (see also B.1.1).
266. Rights and safeguards should not unduly prevent or delay effective exchange of information. For instance, notification rules should permit exceptions from prior notification (e.g.in cases in which the information request is of a very urgent nature or the notification is likely to undermine the chance of success of the investigation conducted by the requesting jurisdiction).
C. Exchanging Information
Overview
269. Jurisdictions generally cannot exchange information for tax purposes unless they have a legal basis or mechanism for doing so. In Slovenia, the legal authority to exchange information derives from its information exchange agreements, as soon as such mechanism is ratified and published in the Official Gazette. This section of the report examines whether Slovenia has a network of information exchange agreements that allow it to achieve effective exchange of information in practice. 270. Slovenia has a network of information exchange mechanisms that covers 94 jurisdictions (including all relevant partners), 58 by way of a DTC, and 3 by way of a TIEA. In addition, the OECD/CoE Convention on Mutual Administrative Assistance in Tax Matters covers 33 jurisdictions that Slovenia does not have a bilateral agreement with. Information can be exchanged under DTCs, TIEAs, the OECD/CoE Convention on Mutual Administrative Assistance in Tax Matters and EU instruments. Its DTCs and TIEAs generally contain sufficient provisions to enable Slovenia to exchange all relevant information, as does the OECD/CoE Convention on Mutual Administrative Assistance in Tax Matters. 271. While this report is focused on the terms of its EOI agreements and practices concerning EOI on request, Slovenia is also involved in spontaneous and automatic exchange of information, e.g.under the EU Savings Directive 2003/48/EC. Slovenia also exchanges information on VAT and recovery with other European jurisdictions. 272. During the period under review (July 2009-June 2012), Slovenia received a total of 74 requests for information (18 requests received from 1July 2009 to 31December 2009, 18 for 2010, 27 for 2011 and 11 for the period from 1January 2012 to 30June 2012), from 17 treaty partners, the most significant being Austria, Croatia, Germany and Italy.
277. Slovenia is party to a variety of bilateral and multilateral exchange of information mechanisms. Bilaterally, Slovenia has concluded 58 DTCs and 3 TIEAs (see Annex2). This section of the report explores whether these agreements allow Slovenia to effectively exchange information. 278. In addition to its bilateral agreements, on 27May 2010 Slovenia signed the OECD/CoE Convention on Mutual Administrative Assistance in Tax Matters, under which information can be exchanged according to the international standard with 33 jurisdictions16 with which Slovenia does not
16. These jurisdictions are: Argentina, Aruba, Australia, Belize, Brazil, the Caribbean part of the Netherlands (islands of Bonaire, Sint Eustatius and Saba), Colombia, Costa Rica, Curaao, Faroe Islands, Ghana, Greenland, Guatemala, Indonesia, Japan, Mexico, Montserrat, Morocco, New Zealand, Nigeria, Saudi Arabia,
have a bilateral agreement, provided that the domestic laws of the relevant jurisdictions do not impose any restrictions. This Convention was ratified by Slovenia in January 2011 and entered into force for Slovenia on 1June 2011. 279. Since the Phase1 review, three protocols have entered into force (Austria, Germany and Switzerland) and one protocol has been signed (Luxembourg). In addition, seven new agreements have entered into force (Armenia (DTC), Azerbaijan (DTC), Georgia (DTC), Guernsey (TIEA), Iceland (DTC), Isle of Man (TIEA) and Kuwait), and four have been signed (Jersey (TIEA), Kosovo (DTC), United Arab Emirates (DTC) and Uzbekistan (DTC)). 280. As an EU member state, Slovenia also exchanges tax information under various other multilateral mechanisms, including: Council Directive 2011/16/EU of 15February 2011 on administrative co-operation in the field of taxation, replacing Council Directive 77/799/EEC concerning mutual assistance by the competent authorities of the Member States of the EU in the field of direct taxation and taxation of insurance premiums. Council Directive 2003/48/EC of 3June 2003 on taxation of savings income in the form of interest payments. This Directive aims to ensure that savings income in the form of interest payments generated in an EU member state in favour of individuals or residual entities being resident of another EU member state are effectively taxed in accordance with the fiscal laws of their state of residence. It also aims to ensure exchange of information between member states. Council Regulation (EU) 904/2010 of 7October 2010 on administrative co-operation and combating fraud in the field of value added tax.
281. When more than one legal instrument may serve as the basis for exchange of information for example where there is a bilateral agreement with an EU member state which also applies Council Directive 2011/16/EU the problem of overlap is generally addressed within the instruments themselves. There are no domestic rules in Slovenia requiring it to choose between mechanisms where it has more than one agreement involving a particular partner and thus the competent authority is free for any exchange to invoke all of the available mechanisms or to choose the most appropriate one.
SintMaarten, South Africa, and Tunisia. Whilst the convention is already in force in Argentina, Aruba, Australia, the Caribbean part of the Netherlands (islands of Bonaire, Sint Eustatius and Saba), Costa Rica, Curaao, Faroe Islands, Ghana, Greenland Japan, Mexico, Montserrat, Slovenia and Sint Maarten, the convention is yet to come into force in the other jurisdictions.
287. 17 of Slovenias DTCs (with Armenia, Austria, Azerbaijan, Belarus, Cyprus1718, Germany, Georgia, Iceland, Kosovo, Kuwait, Luxembourg (protocol), Norway, Singapore, Switzerland, United Arab Emirates, the United Kingdom and Uzbekistan) and its TIEAs with Guernsey, the Isle of Man and Jersey use this or similar language and therefore clearly meet the foreseeably relevant standard. 288. It is noted that the DTC with Cyprus includes a provision requiring the requesting state to demonstrate the foreseeable relevance of a request by providing certain specified information. The provision in question mirrors Article5(5) of the OECD Model TIEA and, therefore, the requirement is consistent with the international standard. Similar provisions are included in Slovenias TIEAs. 289. The other DTCs concluded by Slovenia provide for the exchange of information that is necessary or relevant for carrying out the provisions of the Convention or of the domestic laws of the Contracting States, or contain language which has a similar meaning. The Commentary to Article26(1) of the OECD Model Tax Convention refers to the standard of foreseeable relevance and states that the Contracting States may agree to an alternative formulation of this standard that is consistent with the scope of the Article, for instance by replacing foreseeably relevant with necessary. Slovenias authorities state that they interpret these alternative formulations as equivalent to the term foreseeably relevant. Therefore, all of Slovenias information exchange agreements meet the foreseeably relevant standard.
other jurisdictions with which Slovenia has concluded a DTC. It is recommended that Slovenia update its DTCs with relevant partners to remove this limitation.
been any instances where Slovenia was not in a position to provide the information in the specific form requested or in an acceptable format.
In force (ToRC.1.8)
307. Exchange of information cannot take place unless a jurisdiction has exchange of information arrangements in force. Where such arrangements have been signed, the international standard requires that jurisdictions must take all steps necessary to bring them into force expeditiously. 308. Of the 61 bilateral information exchange agreements concluded by Slovenia, seven are not in force (with Egypt, Iran, Jersey (TIEA), Kosovo, Luxembourg (Protocol), United Arab Emirates and Uzbekistan). Slovenia has completed all internal procedures and notified its treaty partners of the completion of the ratification procedure in respect of the agreement with Egypt. 309. In Slovenia, treaty negotiations generally take place in English and once the text of the treaty is agreed and initialled, it has to be translated into Slovene before signature. The translation takes approximately one month. When the translation is completed, a report is prepared by the Ministry of Finance, which is reviewed by the Ministry of Foreign Affairs and then presented to the Government21. The Government decides who will sign the treaty. 310. Once the treaty is signed, the Ministry of Finance prepares a letter to the Ministry of Foreign Affairs for them to prepare the draft law for ratification. This draft law is then sent to the Government for approval and then to the Parliament for adoption. 311. Once the law is adopted, the treaty is published in the Official Gazette and the Ministry of Foreign Affairs exchanges a notice with the partner jurisdiction to notify the ratification. When the date of entry into force is known, it is published in the Official Gazette. 312. It generally takes approximately a year between the end of the negotiations and the ratification of the treaty.
315. Ultimately, the international standard requires that jurisdictions exchange information with all relevant partners, meaning those partners who are interested in entering into an information exchange arrangement. Agreements cannot be concluded only with counterparties without economic significance. If it appears that a jurisdiction is refusing to enter into agreements or negotiations with partners, in particular ones that have a reasonable expectation of requiring information from that jurisdiction in order to properly administer and enforce its tax laws it may indicate a lack of commitment to implement the standards. 316. In Slovenia, the team in charge of treaty negotiations comprises four persons, none of them being exclusively dedicated to treaty negotiations. Slovenia has never refused to enter into negotiations but has sometimes postponed the negotiations due to limited resources of the negotiation team. 317. Slovenias priority over the last few years has been to update its network of existing treaties to bring them to the standard. Slovenia has also signed agreements with new jurisdictions. Negotiations of agreements with new partners are decided on the basis of criteria such as economic interest. Slovenia has indicated that the priority for the coming years will be to sign TIEAs with new jurisdictions that have committed to the standard. All new agreements concluded by Slovenia are based on the OECD Model Tax Convention and include a full version of Article26 of this Model Convention (including paragraphs4 and 5).
318. Slovenia has exchange of information relationships with 94 jurisdictions, of which 58 are through a DTC and 3 through a TIEA. In addition, the OECD/CoE Convention on Mutual Administrative Assistance in Tax Matters, which covers 76 jurisdictions, 33 of which Slovenia does not have a bilateral agreement with. The exchange of information relationships cover jurisdictions representing: all of its main trading partners (Germany, Austria, Italy, France and Croatia); all of the G20 member jurisdictions and 77 of the Global Forum member jurisdictions.
319. In the last year, three protocols have entered into force (Austria, Germany and Switzerland) and one protocol was signed (Luxembourg). In addition, seven new agreements have entered into force (Armenia (DTC), Azerbaijan (DTC), Georgia (DTC), Guernsey (TIEA), Iceland (DTC), Isle of Man (TIEA) and Kuwait), and four were signed (Jersey (TIEA), Kosovo (DTC), United Arab Emirates (DTC) and Uzbekistan (DTC)). 320. Comments were sought from the jurisdictions participating in the Global Forum in the course of the preparation of this report, and no jurisdiction advised the assessment team that Slovenia had refused to negotiate or conclude an information exchange agreement with it. In summary, Slovenias network of information exchange agreements covers all relevant partners. Slovenia has made a considerable amount of effort and progress in updating and developing its network of treaties to the standard, leading to an exchange of information relationship with 94 partners.
Determination and factors underlying recommendations
Phase1 determination The element is in place. Factors underlying recommendations Recommendations Slovenia should continue to develop its EOI network with all relevant partners. Phase2 rating Compliant
C.3. Confidentiality
The jurisdictions mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received.
organisational, physical and technical measures. Entry to the tax authority premises is restricted, protected by an electronic code and a security guard is present at all times. Besides applying to all employees of the tax authority, duty to protect confidential tax information applies to employees of all other government agencies as well as to all other personnel, experts, translators, minutes keepers and other persons who co-operate or have co-operated in the collection of taxes, and all other persons who, due to the nature of their work, come into contact with information regarded as confidential tax information. 325. To prevent unauthorised access to confidential data, the tax authorities have set up a system of procedures and measures for safeguarding confidential information. The Tax Administration has a password-protected IT system and a password is also needed to enter different databases. In addition, the Tax Register allows tracking of which data has been accessed and by whom. Access to the database is limited only to employees who need the information in connection to their work. Each entry has to be justified and traceability is ensured. No one can obtain confidential information before it is needed or to a greater extent that is required for the performance of the work. 326. There are other policies and practices that the Tax Administration uses to protect information sent electronically. Information is not sent electronically except for the exchange of information amongst EU Countries via CCN/CSI22 mail. The information exchanged automatically with non-EU countries is sent on encrypted CDs, marked with Tax Confidentiality. Information exchanged between government agencies or between the General Tax Office and Local Tax Offices is exchanged through secured e-mails. 327. When received, an EOI request is registered in the centralised documentation database of the Tax Administration (EPIS) and an identification number is attributed to the request. A hard copy is prepared (marked confidential) and stored at the premises of the General Tax Office in a locked storage unit. Additionally, the request is recorded in the intranet application of the Tax Administration called Maks. Access to the EOI records in Maks is only granted to the International Information Exchange Unit (the Unit) and the contact persons of the Local/Special Tax Offices for requests that are under the competence of their tax office. 328. When an EOI request is transferred from the Unit to a Local/Special Tax Office, the transfer is done by secure e-mail. In addition, the statement This information is furnished under the provision of Double Tax Convention and/or Council Directive and/or Tax Information Exchange Agreement and its use and disclosure must be governed by the provisions named there is added to protect the confidentiality of information.
22. CCN is a secured network mainly devoted to exchange of information in tax matters between EU member states.
334. The Phase1 evaluation found that: this provision combined with section8 of the Constitution mean that the Slovene authorities can use the enforcement procedures provided for a breach of confidentiality in section16 TPA also for a breach of confidentiality under a DTC. It should be noted that TIEAs and other international treaties are not mentioned in section2(1) TPA, and therefore no penalty would apply for breach of confidentiality related to information other than information related to Slovene tax liability under the three TIEAs concluded by Slovenia and the 33 jurisdictions covered by the OECD/CoE Convention on Mutual Administrative Assistance in Tax Matters with which Slovenia does not have a DTC (see also C.1). The Phase1 evaluation recommended that Slovenia ensures that it can use enforcement measures for breach of confidentiality in all cases. 335. Since the Phase1 evaluation, Slovenia has amended section2(1) TPA by removing the specific reference to DTCs. The new provision reads as follow: The tax authority shall proceed pursuant to this Act when deciding on the obligations and rights of individuals, legal persons and other parties [] in implementing the international treaty binding upon the Republic of Slovenia. 336. With this amendment, enforcement measures referred to in this section are no longer limited to DTCs, they are now applicable to all international treaties. Considering the amendment made to section2(1) TPA, Slovenia is now in a position to use enforcement measures for breach of confidentiality in all cases, although this new provision has not been used for enforcement purposes since there has been no breach of confidentiality. The Phase1 recommendation is therefore removed. 337. Finally, it is noted that a specific provision is in force to lift the obligation to keep information confidential where it must be disclosed to the competent authorities of another jurisdiction under (i)an EU instrument (ii) an international treaty on the avoidance of double taxation, or (iii) any other international treaty such as a TIEA (s.27 TPA).
Determination and factors underlying recommendations
Phase1 determination The element is in place. Phase2 rating Compliant
342. There are no specific legal or regulatory requirements in place which would prevent Slovenia from responding to a request for information by providing the information requested or providing a status update within 90days of receipt of the request. 343. During the period under review (July 2009 June 2012), Slovenia received a total of 74 requests for information (18 requests received from 1July 2009 to 31December 2009, 18 in 2010, 27 in 2011 and 11 in the period from 1January 2012 to 30June 2012), from more 17 treaty partners, the most significant being Austria, Croatia, Germany and Italy. 344. For these years, the percentage of requests where Slovenia answered within 90days, 180days, one year, or more than one year, were:
2009 (July-Dec) nr. Full response*: 90days 180days (cumulative) 1 year (cumulative) >1 year (b) (c) 11 15 (a) 17 1 0 0 0 % 2010 nr. % 2011 nr. % 56% 85% 0% 0% 0% 0% 2012 (Jan-June) Total Average nr. 6 9 0 0 0 0 % nr. % 100% 60% 85% 98% 2% 0% 0% 0%
Total number of requests received** (a+b+c+d+e) 18 100% 18 100% 27 100% 11 100% 74 61% 12 83% 15 94% 17 6% 0% 0% 0% 1 0 0 0 67% 15 83% 23 6% 0% 0% 0% 0 0 0 0 55% 44 82% 62 0% 0% 0% 0% 2 0 0 0
Failure to obtain and provide information Requested(d) Requests still pending at date of review (e)
* The time periods in this table are counted from the date of receipt of the request to the date on which the complete and final response was issued. ** Slovenia counts each written request from an EOI partner as one EOI request even where more than one person is the subject of an inquiry and/or more than one piece of information is requested.
345. 98% of requests received during the period under review were answered within one year. On average, for the period under review, 60% of the requests were answered in less than 90days and 85% in less than 180days. However, one treaty partner has commented that answers have sometimes been delayed. Only two requests took more than a year to answer during the whole period. Slovenia explained that these two requests were responded to in more than a year because both cases were related to a complex situation where verification of a large number of businesses and business transactions between several Slovene taxpayers and taxpayers in third countries was necessary.
Organisational process
349. When an EOI request is received by the Tax Administration it is first registered in the centralised documentation database of the Tax Administration (EPIS) with the date of reception and an identification number which will be used to track the request. A paper copy is also created and confidentially archived. All the incoming and outgoing requests are also recorded in the intranet system (Maks) by the Unit. The request is then attributed to the agent in charge of EOI on request who verifies, within a few days, whether the request is complete, includes all documents and attachments, is valid, was sent by the partners competent authority, has legal basis and is foreseeably relevant. 350. When a request is not complete, the tax authorities first try to find the information by themselves; if they cant, they then ask the requesting jurisdiction for additional information. In practice, approximately one request received per year is incomplete.
351. If the requested information is directly available to the Unit, the request is answered directly by the agent in charge of EOI on request within one month of receipt of the request. If the information is not directly available to the Unit, the request is translated and then transferred to another government agency or to the Local/Special Tax Office for collection of the information. The translation is usually done directly by the Unit in approximately two weeks. The translation can also be done by the translation service of the Slovene government in more complex cases (but the timeline remains the same). 352. Once translated, if the information is available with another government agency, a letter is sent to that agency requesting the information and the information is required within 15days. The original request is not sent to the other government agency; the information requested is set out in the letter. In practice, Slovenias authorities have confirmed that the information is always provided by other government agencies in due time and no follow-up measures are needed. 353. If the information is not available in any government agencies, the request is transferred (after translation) to the Local/Special Tax Office in charge of the person concerned, that is responsible for collecting the information from the person concerned or from a third party in possession of the information. 354. Transfers to the contact person of the Local/Special Tax Office are always made through secure email. There is no specific timeframe given to the Local/Special Tax Office to obtain the information, but Local/Special Tax Offices prioritise EOI requests received from the Unit. Slovenias authorities confirmed that the collaboration with Local/Special Tax Offices is very good and the information is obtained and transferred to the Unit with three months in the vast majority of cases. If the information is not received in two months, the Unit follows-up by e-mail and gives an additional deadline to provide the information (cases where the information is not obtained within three months are generally complex cases where additional time is needed). From 1January 2013, the Unit has introduced a two-month deadline for Local/ Special Tax Office to provide the request information. 355. Once the information is obtained, the contact person of the Local/ Special Tax Office verifies the information to make sure it is complete, and transfers the answer to the Unit. Once received by the Unit, the information is verified by the agent in charge of EOI on request and translated before the answer is sent to the requesting partner, within a few days of receipt of the answer from the Local/Special Tax Office.
Resources
356. As mentioned above, the Unit is staffed with seven employees, one Head of Unit, four senior advisers, one adviser and one analyst. Within the Unit, in addition to the Head of Unit, one person is in charge of EOI for direct taxation, one person is in charge of spontaneous EOI, two persons for automatic exchange, one person is in charge of VAT and one person is responsible for requests on recovery. A reorganisation of the Tax Administration is expected to be implemented soon, including the merger of the Tax Administration and the Customs Administration and the reduction of the number of Local Tax Offices. As a consequence, some additional employees are expected to be transferred to the Unit in the near future. 357. All employees of the Unit are from the Tax Administration and thus have appropriate tax training and experience. They have access to a manual for the international exchange of information issued by the Tax Administration, which outlines the administrative processes and relevant legal bases. The manual is available on the Maks system. It provides detailed instructions to all persons involved in EOI. Information on forms used amongst EU partners, prepared by the European Commission, is also available in the IT system in the Slovene language. 358. Various training courses are available to employees of the Unit, including EOI training organised by the Tax Administration as well as conferences and workshops organised by the EU, the OECD and the Global Forum, to ensure continuous improvements to administrative procedures and practices. The Unit also organises various events in which employees involved in EOI, such as Local/Special Tax Office employees, receive information and updates on EOI. In the last three years, the Unit organised regular training for contact persons nominated at Local/Special Tax Offices (all contact persons have received this training), training for auditors, and other training courses which included EOI aspects. 359. Employees also have access to E-learning tools developed by the European Commission. The modules are available on the intranet site of the Tax Administration in Slovene. Other training in relation to EOI is also organised by the Tax Administration, such as training on international cooperation and on the protection of personal data and confidentiality. 360. Overall, Slovenia has dedicated appropriate financial, human and technical resources to the various areas of its exchange of information system taking account of the volume of requests it receives. All competent authority staff maintain high professional standards and have adequate expertise and training specific to exchange of information.
Determination
Recommendations
Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities (ToR A.1) The element is in place. Ownership information on foreign companies having sufficient nexus with Slovenia (in particular, having their place of effective management in Slovenia) and on foreign partnerships carrying on business in Slovenia or deriving taxable income is not consistently available. Phase2 rating: Compliant Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements (ToR A.2) The element is in place. Phase2 rating: Compliant Banking information should be available for all account-holders (ToR A.3) The element is in place. Phase2 rating: Compliant Slovenia should ensure that ownership information on foreign companies with sufficient nexus with Slovenia (in particular, having their place of effective management in Slovenia) and on foreign partnerships carrying on business in Slovenia or deriving taxable income is available in all cases.
Determination
Recommendations
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information) (ToR B.1) The element is in place. Phase2 rating: Compliant The rights and safeguards (e.g.notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information (ToR B.2) The element is in place. Phase2 rating: Compliant Exchange of information mechanisms should allow for effective exchange of information (ToR C.1) The element is in place. Phase2 rating: Compliant The jurisdictions network of information exchange mechanisms should cover all relevant partners (ToR C.2) The element is in place. Slovenia should continue to develop its EOI network with all relevant partners.
Phase2 rating: Compliant The jurisdictions mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received (ToR C.3) The element is in place. Phase2 rating: Compliant The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties (ToR C.4) The element is in place. Phase2 rating: Compliant
Determination
Recommendations
The jurisdiction should provide information under its network of agreements in a timely manner (ToR C.5) This element involves issues of practice that are assessed in the Phase2 review. Accordingly no Phase1 determination has been made. Phase2 rating: Compliant In instances where it cannot provide an answer within 90days, Slovenia does not provide, routinely, a status update to its treaty partners. Slovenia should ensure that it responds to EOI requests in a timely manner, by providing the information requested within 90days of receipt of the request, or if it has been unable to do so, by providing a status update.
ANNEXES 103
23.
This Annex presents the jurisdictions response to the review report and shall not be deemed to represent the Global Forums views.
104 ANNEXES
24.
ANNEXES 105
Multilateral agreement
Slovenia is a signatory to the multilateral OECD/CoE Convention on Mutual Administrative Assistance in Tax Matters. The status of the multilateral Convention and its amending 2010 Protocol as at 21November 2013 is set out in the table below.25 When two or more arrangements for the exchange of information for tax purposes exist between Slovenia and a treaty partner, the parties may choose the most appropriate agreement under which to exchange the information.
Original Convention Signature (opened on 25-Jan-88) Entry into force Protocol (P)/ Amended Convention (AC) Signature (opened on 27-May-10) Entry into force 01-03-2013 (AC) 01-12-2013 05-11-2013 (AC) 01-03-2014 03-11-2011 (AC) 01-01-2013 01-09-2013 03-11-2011 (AC) 01-12-2012 29-05-2013 (AC) 04-04-2011 (P) 29-05-2013 (AC) 03-11-2011 (AC) 01-03-2014 28-04-2004 03-11-2011 (P) 27-08-2013 (AC) 24-10-2013 (AC) 23-05-2012 (AC) 01-03-2012 (AC) 11-10-2013 (AC) 26-10-2012 (AC) 01-03-2014 01-01-2014
Country Albania Andorra Anguillaa Argentina Arubab Australia Austria Azerbaijan Belgium Belize Bermudac Brazil British Virgin Islandsd Canada Cayman Islandse China Chile Colombia Costa Rica Croatia Curaaof Czech Republic
26-03-2003 07-02-1992
01-10-2004 01-12-2000
01-09-2013 01-03-2014
106 ANNEXES
Protocol (P)/ Amended Convention (AC) Signature (opened on 27-May-10) Entry into force 27-05-2010 (P) 01-06-2011 29-05-2013 (AC) 01-06-2011 27-05-2010 (P) 01-06-2011 27-05-2010 (P) 01-04-2012 03-11-2010 (P) 01-06-2011 03-11-2011 (P) 10-07-2012 (AC) 01-09-2013 01-03-2014 21-02-2012 (P) 01-09-2013 01-06-2011 05-12-2012 (AC) 12-11-2013 (P) 27-05-2010 (P) 01-02-2012 26-01-2012 (AC) 01-06-2012 03-11-2011 (AC) 30-06-2011 (AC) 01-09-2013 01-03-2014 27-05-2010 (P) 01-05-2012 03-11-2011 (P) 01-10-2013 27-05-2010 (P) 01-07-2012 29-05-2013 (AC) 21-11-2013 (AC) 07-03-2013 (P) 29-05-2013 (P) 26-10-2012 (AC) 01-09-2013 27-05-2010 (P) 01-09-2012 27-01-2011 (P) 01-03-2012 01-10-2013 21-05-2013 (AC) 27-05-2010 (P) 01-09-2013 26-10-2012 (AC) 01-03-2014 29-05-2013 (AC)
Country Denmark Estonia Faroe Islandsg Finland France Georgia Germany Ghana Gibraltarh Greece Greenlandi Guatemala Hungary Iceland India Indonesia Ireland Isle of Manj Italy Japan Korea Latvia Liechtenstein Lithuania Luxembourg Malta Mexico Moldova Montserratk Morocco Netherlands New Zealand Nigeria
Original Convention Signature (opened on 25-Jan-88) Entry into force 16-07-1992 01-04-1995
21-02-2012
01-09-2013
12-11-2013 22-07-1996
01-11-1996
25-09-1990
01-02-1997
ANNEXES 107
Country Norway Poland Portugal Romania Russia San Marino Saudi Arabia Singapore Sint Maartenl Slovak Republic Slovenia South Africa Spain Sweden Switzerland Tunisia Turkey Turks & Caicosm Ukraine United Kingdom United States
Original Convention Signature (opened on 25-Jan-88) Entry into force 05-05-1989 01-04-1995 19-03-1996 01-10-1997 27-05-2010 15-10-2012
Protocol (P)/ Amended Convention (AC) Signature (opened on 27-May-10) Entry into force 27-05-2010 (P) 01-06-2011 09-07-2010 (P) 01-10-2011 27-05-2010 (P) 15-10-2012 (P) 03-11-2011 (AC) 21-11-2013 (AC) 29-05-2013 (AC) 29-05-2013 (AC) 01-09-2013 29-05-2013 (AC) 01-03-2014 27-05-2010 (P) 01-06-2011 03-11-2011 (AC) 01-03-2014 18-02-2011 (P) 01-01-2013 27-05-2010 (P) 01-09-2011 15-10-2013 (AC) 16-07-2012 (AC) 01-02-2014 03-11-2011 (AC) 01-12-2013 27-05-2010 (P) 01-09-2013 27-05-2010 (P) 01-10-2011 27-05-2011 (P)
Notes: a. Extension by United Kingdom (receipt by depositary on 13November 2013) b. Extension by the Netherlands (receipt by depositary on 29May 2013) c. Extension by United Kingdom (receipt by depositary on 13November 2013) d. Extension by United Kingdom (receipt by depositary on 13November 2013) e. Extension by United Kingdom (receipt by depositary on 25September 2013) f. Extension by the Netherlands (receipt by depositary on 29May 2013) g. Extension by Denmark (receipt by depositary on 28January 2011) h. Extension by United Kingdom (receipt by depositary on 13November 2013) i. Extension by Denmark (receipt by depositary on 28January 2011) j. Extension by United Kingdom (receipt by depositary on 13November 2013) k. Extension by United Kingdom (receipt by depositary on 25June 2013) l. Extension by the Netherlands (receipt by depositary on 29May 2013) m. Extension by United Kingdom (receipt by depositary on 20August 2013)
108 ANNEXES
Bilateral agreements
Exchange of information agreements signed by Slovenia as at November 2013, in alphabetical order:
Type of EoI arrangement DTC DTC DTC Austria Protocol Azerbaijan DTC Belarus DTC Belgium DTC Bosnia and Herzegovina DTC Bulgaria DTC Canada DTC China (Peoples Rep.) DTC Croatia DTC 26 Cyprus DTC Czech Republic DTC Denmark DTC Egypt DTC Estonia DTC Federal Yugoslav DTC Republic of Macedonia Finland DTC France DTC DTC Germany Protocol Georgia DTC Greece DTC Guernsey TIEA Hungary DTC Iceland DTC India DTC Iran DTC Ireland DTC Jurisdiction Albania Armenia Date signed 27February 2008 11October 2010 1October 1997 28November 2011 9June 2011 6October 2010 22June 1998 16May 2006 20October 2003 15September 2000 13February 1995 10June 2005 12October 2010 13June 1997 2May 2001 15December 2009 14September 2009 15May 1998 19September 2003 7April 2004 3May 2006 17May 2011 6December 2012 5June 2001 26September 2011 26August 2004 4May 2011 13January 2003 20September 2011 12March 2002 Date entered into force 4May 2009 23April 2013 1February 1999 1November 2012 10September 2012 31May 2011 2October 2002 20November 2006 4May 2004 13August 2002 27December 1995 10November 2005 19April 2011 28April 1998 3June 2002 26June 2006 29September 1999 16June 2004 1March 2007 19December 2006 30July 2012 25September 2013 8December 2003 9August 2012 23December 2005 11September 2012 17February 2005 11December 2002
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
26.
ANNEXES 109
29 30 31 32 33 34 35 36 37
Jurisdiction Isle of Man Israel Italy Jersey Korea Kosovo Kuwait Latvia Lithuania
38 Luxembourg 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Malta Moldova Montenegro Netherlands Norway Poland Portugal Qatar Romania Russia Serbia Singapore Slovak Republic Spain Sweden
54 Switzerland 55 56 57 58 59 60 61 Thailand Turkey Ukraine United Arab Emirates United Kingdom United States Uzbekistan
Type of EoI arrangement TIEA DTC DTC TIEA DTC DTC DTC DTC DTC DTC Protocol DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC Protocol DTC DTC DTC DTC DTC DTC DTC
Date signed 27June 2011 30January 2007 11September 2001 28November 2013 25April 2005 26June 2013 11January 2010 17April 2002 23May 2000 2April 2001 20April 2013 8October 2002 31May 2006 11June 2003 30June 2004 18February 2008 28June 1996 5March 2003 10January 2010 8July 2002 29November 1995 11June 2003 8January 2010 14May 2003 23May 2001 18June 1980 12June 1996 7September 2012 11July 2003 19April 2001 23April 2003 12October 2013 13November 2007 21June 1999 11February 2013
Date entered into force 31August 2012 27December 2007 12January 2010 2March 2006 17May 2013 22November 2002 1February 2002 18December 2002 12June 2003 14November 2006 31December 2003 31December 2005 10December 2009 10March 1998 13August 2004 1December 2010 28March 2003 20April 1997 31December 2003 25November 2010 11July 2004 19March 2002 16December 1981 1December 1997 14October 2013 4May 2004 23December 2003 25April 2007 12September 2008 22June 2001 8November 2013
110 ANNEXES
Taxation laws
Corporate Income Tax Act Rules on books of account and other tax records for natural persons carrying out a business activity Tax Administration Act Tax Procedure Act
Miscellaneous
Constitution Legal Professions Act
ANNEXES 111
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Consult this publication on line at http://dx.doi.org/10.1787/9789264210158-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.
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