Financial Crime World

Respect to Reportable Accounts: A New Era in International Cooperation

The United States and Slovenia have taken a significant step towards greater transparency and cooperation in taxation by agreeing to share information on reportable accounts, marking a new era in international cooperation.

Background

Under the terms of the agreement, each country will obtain specific information from financial institutions regarding reportable accounts held by individuals and entities. This includes details such as account numbers, balances, interest paid, income generated, and other relevant information.

Terms of the Agreement

The exchange of information will take place on an annual basis, with the United States providing data on Slovenian reportable accounts held by U.S. financial institutions, and Slovenia doing likewise for U.S. reportable accounts held by Slovenian financial institutions.

  • The agreement also allows for flexibility in determining the characterization of payments made to reportable accounts, taking into account the tax laws of each country.
  • The Competent Authorities of both countries have agreed to establish procedures for the automatic exchange of information and rules for implementing the agreement.

Implementation

The agreement comes into effect starting from 2014, with the first exchange of information taking place by September 30th, 2015.

  • In a statement, Slovenia’s Ministry of Finance welcomed the agreement, saying: “This cooperation will help us to better understand the tax situation of our citizens and businesses abroad, and vice versa. It is an important step towards creating a more transparent and fair tax environment.”
  • The full text of the agreement can be found on the official websites of the U.S. Department of the Treasury and Slovenia’s Ministry of Finance.

Quotes

  • “We are committed to promoting international cooperation and transparency in taxation,” said a spokesperson from the U.S. Department of the Treasury. “This agreement will help ensure that individuals and entities comply with their tax obligations and reduce the risk of tax evasion.”
  • “This agreement demonstrates our commitment to working together with international partners to combat tax evasion and promote transparency,” said a spokesperson from the Slovenian Ministry of Finance. “We look forward to continuing our cooperation in this area.”

Key Points:

• The United States and Slovenia will exchange information on reportable accounts held by individuals and entities. • The information exchanged includes account numbers, balances, interest paid, income generated, and other relevant details. • The exchange of information will take place on an annual basis, starting from 2014. • The agreement allows for flexibility in determining the characterization of payments made to reportable accounts, taking into account the tax laws of each country. • The Competent Authorities of both countries have agreed to establish procedures for the automatic exchange of information and rules for implementing the agreement.