Presently, information on private bank accounts are protected by a banking secrecy law, which requires banks to disclose information only on corporate accounts and the accounts of entrepreneurs, but doesn’t mention retail customers.
According to the 59-page draft amendments to the Tax and Criminal Codes, the Federal Tax Service will have the right to request information if a bank’s customer faces a tax inquiry or if a court has ruled that the person owes taxes. The tax authorities must prove that they have a strong reason for their request, the publication added.
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The proposed law requires banks to disclose information to tax authorities within three days of receiving the request.
Financial institutions would also be forbidden from making information on tax authorities’ requests public.
According to other local media report, the government is scheduled to consider the bill by 30 August 2010.
The Economic Development Ministry also has proposed qualifying tax evasion by individuals and organizations as money laundering — a crime that carries a harsher prison term. In an effort to track money laundering, banks would be given the right to cancel suspicious transactions.
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