Lithuania: As of 2016 the taxpayers themselves shall inform the STI about the tax risks.
In the end of June the amendments of the Law on Tax Administration were adopted that will help the STI with the assistance of the taxpayers to identify possible failures to pay taxes or tax avoidance cases.
Upon the request of the STI the taxpayers shall substantiate the sources of their income and assets with the respective documents that will include the information about the persons from whom the income or the assets have been received. Before the amendment, the obligation to only provide explanations on the income received and assets acquired had been in force.
Financial institutions shall disclose the following information:
– The annual turnover in case the turnover of the person (in all his accounts in a single financial institution) exceeds EUR 15 000;
– The closing balance of the accounts in case it exceeds EUR 5 000;
– Interest, debts, securities, insurance payments, pension contributions, any other information necessary for the performance of the STI’s functions.
Lithuanian legal entities shall disclose the following information to the STI:
– Cash sums exceeding EUR 15 000 received from their shareholders;
– Debts to natural persons incurred by them on behalf of the legal person and payments received on behalf of legal entity in case the amount exceeds EUR 15 000;
– Services provided by foreign legal entities in Lithuania with the value exceeding EUR 15 000 in a calendar year;
– Information on Lithuanian non-resident, employed under temporary employment agreement that is concluded with the foreign legal entity.
Another important amendment – in case the taxpayer submits the tax return less than 90 days from the end of the statute of limitations, in 90 days the STI shall have a right to audit the correctness of the tax reported and recalculate it without any limits.
And finally, until 30 June 2016 the taxpayers shall inform the STI about the sources of income received and assets acquired (including the cash borrowed), excluding cases when such sources have already been reported by the taxpayer or third parties. Without provision of the noted information, the Tax authorities shall not even consider or evaluate it later.