Tax Committee gives official explanation on P2P transfers

Earlier, it was reported that the government of Uzbekistan had developed a draft resolution providing for the approval of procedures under which banks would submit information on the accounts and deposits of legal entities and individuals to tax authorities. The Tax Committee has issued an explanation regarding the draft resolution.

According to the Committee, the interpretation of the draft by some media outlets mainly as an initiative related to individuals’ deposits does not fully reflect the actual content of the document.

According to the explanation, the draft proposes establishing unified rules for information exchange between banks and tax authorities within the framework of existing legislation. It sets out the procedure, deadlines, forms and electronic format for providing information necessary for tax control purposes.

The Committee stated that the draft does not grant new powers to tax authorities, does not abolish bank secrecy and does not provide for free access to the bank accounts of citizens or entrepreneurs. Banks are entitled to provide information to tax authorities only in cases and in the procedure established by law.

The relevant powers of tax authorities are enshrined in Article 134 of the Tax Code. In addition, under the Law “On Bank Secrecy,” information constituting bank secrecy regarding a bank client’s taxation matters may be provided to state tax service bodies only in the manner established by law.

Information received by tax authorities is considered tax secrecy. Its disclosure, transfer to third parties or use for purposes other than those established is prohibited by law.

It was noted that such information exchange mechanisms are used in international practice, including in OECD countries, and comply with global standards. Since Uzbekistan has also joined the Global Forum on Transparency and Exchange of Information for Tax Purposes, there must be clear and transparent rules in this area.

The document has been posted for public discussion. The Tax Committee said it is interested in constructive participation in the discussion by citizens, entrepreneurs, the expert community, as well as representatives of the media.