Gov't intensifies int'l cooperation in exchanging tax info

The Croatian government at its session on Thursday sent to parliament a bill on ratifying the Convention on Mutual Administrative Assistance in Tax Matters with the aim to prevent tax evasion and fraud.

Finance Minister Slavko Linic explained that the bill ratifies the Convention which set up an international legal framework for providing mutual assistance in tax matters. The bill is aimed at enabling the exchange of tax information with countries with which Croatia did not have an agreement on avoiding double taxation.

Joining the convention is a precondition for signing a treaty with the United States, so that Croatia can advance the execution of tax obligations on the international level, in compliance with the Foreign Account Tax Compliance Act (FATCA) and in line with the European Commission's recommendation.

The convention, which has so far been signed by 55 countries, is a freestanding multilateral agreement designed to promote international co-operation for a better operation of national tax laws, while respecting the fundamental rights of taxpayers.

The Convention provides for all possible forms of administrative co-operation between the parties in the assessment and collection of taxes, in particular with a view to combating tax avoidance and evasion.

The Convention was amended by a Protocol which entered into force on 1 June 2011. This brings the Convention in line with the international standard and opens it for signature by all countries.

(Hina)



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