What should banks need to report to the tax service?


It’s not a secret that the electronic system RASA has been operating in Latvia for 8 years. It collects all information about every Latvia resident. And the main job of this system is to collect information about taxes paid by people and about everyone who carried out financial transactions with them, as well as information from the land register, information from the Road Traffic Safety Directorate, credit information and so on.

The system is configured in such a way that it automatically collates the data and charges them to potential “tax defaulters”. Those who scored the most such items are asked to explain the situation, as well as the costs and revenues are studied more carefully. Some people may be asked to get the audit.

Based on the new law, banks and other institutions providing financial services are now required to provide government authorities with information about customers, whose total debit turnover or the total credit turnover on payment and accumulation accounts for the past year is 15 thousand euros or more.

Banks should provide information not for each client account separately, but for all these accounts together. Thus it follows that everyone who gets on the card 1250 euros per month will get under a close control of inspection. But the real problems arise for those who get to the card much less, but put on their account through the ATM much more.

As bank must provide information not for each client account separately, but for all accounts together, it means that it takes into account both debit and credit, as well as accumulative accounts if the amount is more than 15,000 euros per year.

Savings are also considered those

Accounts under a term deposit with the time of payment expired and without renewal or a new sign of the contract are also considered savings.

But usual savings accounts are not taken into account

However, it is worth noting that all these norms on turnover exceeding 15,000 per year refer only to customers of one bank. By placing income onto different banks, your information remains unobtrusive for the state revenue service