EXCHANGE OF INFORMATION IN TAX MATTERS

THE ANALYSIS OF CROATIAN LEGAL FRAMEWORK IN LIGHT OF FATCA

Abstract

Emergence of new models of international administrative cooperation in tax
matters is one of the most important issues in the tax landscape of 21st century. In
the post-financial crisis period states have resorted to new methods of cooperation,
primarily with the aim to curb massive tax evasion via tax havens and offshore centres.
The turning point in this regard was the adoption of a piece of legislation in the USA
– the so-called Foreign Account Tax Compliance Act (FATCA). Recent years saw the
conclusion of special treaties between USA and other countries, aimed at successful
implementation of the standards promulgated by FATCA. Even more importantly,
FATCA has acted as a catalyst in the area of international exchange of information, as
symbolized by the adoption of OECD’s global reporting standard. These developments
inevitably have deep effects on relevant legal framework in Croatia. Against this
background, main aim of this paper is to analyse the new normative framework for
exchange of information in tax matters. Special emphasis is placed on FATCA, since
its rules have been replicated by a new multilateral model of cooperation.