Overall findings
Slovenia’s legal framework implementing the AEOI Standard is in place but needs improvement in order to be fully consistent with the requirements of the AEOI Terms of Reference. While Slovenia’s international legal framework to exchange the information with all of Slovenia’s Interested Appropriate Partners (CR2) is consistent with the requirements, its domestic legislative framework requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures (CR1) has deficiencies significant to the proper functioning of elements of the AEOI Standard. Most significantly, deficiencies have been identified in relation to Slovenia’s enforcement framework.
The methodology used for the peer reviews and that therefore underpins this report is outlined in Chapter 2.
Overall determination on the legal framework: In Place But Needs Improvement
Conclusions on the legal framework
General context
Slovenia commenced exchanges under the AEOI Standard in 2017.
In order to provide for Reporting Financial Institutions to collect and report the information to be exchanged, Slovenia:
amended the Tax Procedure Act (ZDavP-2I, as further amended in the OJ No. 69/2017 of 8 December 2017);
amended the Rules on the implementation of the Tax Procedure Act; and
issued further guidance, which is not legally binding.
Under this framework Reporting Financial Institutions were required to commence the due diligence procedures in relation to New Accounts from 1 January 2016. With respect to Preexisting Accounts, Reporting Financial Institutions were required to complete the due diligence procedures on High Value Individual Accounts by 31 December 2016 and on Lower Value Individual Accounts and Entity Accounts by 31 December 2017.
Following the initial peer review by the Global Forum, Slovenia amended its legislative framework to address issues identified, effective from 9 December 2017.
With respect to the exchange of information under the AEOI Standard, Slovenia:
is a Party to the convention on Mutual Administrative Assistance in Tax Matters and activated the associated CRS Multilateral Competent Authority Agreement in time for exchanges in 2017;
has implemented European Directive 2011/16/EU on Administrative Cooperation in the Field of Taxation, as amended by Directive 2014/107/EU; and
has in place European Union agreements with five European third countries.1
Detailed findings
The detailed findings for Slovenia are below, organised per Core Requirement (CR) and sub-requirement (SR), as extracted from the AEOI Terms of Reference (see Annex B).
CR1 Domestic legal framework: Jurisdictions should have a domestic legislative framework in place that requires all Reporting Financial Institutions to conduct the due diligence and reporting procedures in the CRS, and that provides for the effective implementation of the CRS as set out therein.
Determination: In Place But Needs Improvement
Slovenia’s domestic legislative framework is in place and contains most of the key aspects of the CRS and its Commentary requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures, but it needs improvement in relation to the due diligence procedures to be applied (SR 1.2) and the framework to enforce the requirements (SR 1.4). Most significantly, Slovenia does not provide for sanctions on Reporting Financial Institutions for filing incorrect or incomplete information.
SR 1.1 Jurisdictions should define the scope of Reporting Financial Institutions consistently with the CRS.
Slovenia has defined the scope of Reporting Financial Institutions in its domestic legislative framework in accordance with the CRS and its Commentary.
Recommendations:
No recommendations made.
SR 1.2 Jurisdictions should define the scope of Financial Accounts and Reportable Accounts consistently with the CRS and incorporate the due diligence procedures to identify them.
Slovenia has defined the scope of the Financial Accounts that are required to be reported in its domestic legislative framework and incorporated the due diligence procedures that must be applied to identify them in a manner that is largely consistent with the CRS and its Commentary. While a deficiency has been identified with respect to defining the term Participating Jurisdiction it does not materially undermine the implementation of SR 1.2.
Recommendations:
Slovenia should amend its domestic legislative framework to include a definition of Participating Jurisdiction that is in accordance with the AEOI Standard.
SR 1.3 Jurisdictions should incorporate the reporting requirements contained in Section I of the CRS into their domestic legislative framework.
Slovenia has incorporated the reporting requirements in its domestic legislative framework in accordance with the CRS and its Commentary.
Recommendations:
No recommendations made.
SR 1.4 Jurisdictions should have a legislative framework in place that allows for the enforcement of the requirements of the CRS in practice.
Slovenia has a legislative framework in place to enforce the requirements in a manner that is largely consistent with the CRS and its Commentary. However, deficiencies have been identified. More specifically, Slovenia’s domestic legislative framework does not include rules to prevent Financial Institutions, persons or intermediaries from adopting practices to circumvent the reporting and due diligence procedures, and does not provide for sanctions on Reporting Financial Institutions for filing incorrect or incomplete information. These are key elements of the required enforcement framework and are therefore material to its proper functioning.
Recommendations:
Slovenia should amend its legislative framework introduce an anti-avoidance provision in accordance with the Standard.
While Slovenia is able to impose penalties for failing to report, failing to carry out due diligence and failing to keep the required records, it is recommended to amend its legislative framework to ensure it is able to also impose penalties for filing incorrect or incomplete information.
CR2 International legal framework: Jurisdictions should have exchange relationships in effect with all Interested Appropriate Partners as committed to and that provide for the exchange of information in accordance with the Model CAA.
Determination: In Place
Slovenia’s international legal framework to exchange the information is in place, is consistent with the Model CAA and its Commentary and provides for exchange with all of Slovenia’s Interested Appropriate Partners (i.e. all jurisdictions that are interested in receiving information from Slovenia and that meet the required standard in relation to confidentiality and data safeguards) (SRs 2.1 – 2.3).
SR 2.1 Jurisdictions should have exchange agreements in effect with all Interested Appropriate Partners that permit the automatic exchange of CRS information.
Slovenia has exchange agreements that permit the automatic exchange of CRS information in effect with all its Interested Appropriate Partners.
Recommendations:
No recommendations made.
SR 2.2 Such an exchange agreement should be put in place without undue delay, following the receipt of an expression of interest from an Interested Appropriate Partner.
Slovenia put in place its exchange agreements without undue delay.
Recommendations:
No recommendations made.
SR 2.3 Jurisdictions should ensure that the exchange agreements in effect provide for the exchange of information in accordance with the requirements of the Model CAA.
Slovenia’s exchange agreements provide for the exchange of information in accordance with the requirements of the Model CAA.
Recommendations:
No recommendations made.
Comments by the assessed jurisdiction
Slovenia wishes to express its gratitude and deep appreciation for the excellent work carried out by the Secretariat of the Global Forum and the AEOI Assessment Panel. Slovenia is confident that the AEOI legal determination report is a fair and accurate picture of the legal framework in force. We are satisfied with the conclusion that Slovenia’s legal framework implementing the AEOI Standard is in place and is consistent with the requirements of the AEOI Terms of Reference and that there are no recommendations.