This morning I was reading the news (headlines mostly as I don't open every crap article coming my way) and saw one about what is awaiting us starting from Monday.
New Year, New Measures
At first I thought it's a national decision, as after a disastrous financial year like 2020, a measure like this was somehow expected, even though it's not what anyone would want. Then after some research I found out it's a directive issued by the European Parliament and the Council of the European Union on 20 May 2015.
This directive is introducing a set of measures in order to prevent the use of financial system for the purposes of money laundering or terrorist financing and thus taxman will have full access to bank accounts. I mean more control over us. Smile :)
What Changes?
It depends how you look at it.
Companies
Companies have not been under the radar anyway as they have the obligation to report their financial situation twice a year and taxman can show up on their doorstep once a year or maybe once in two years, asking them how they are doing and usually gifting them with a fine (big or small), just to leave a trace. Taxman can also ask companies to pay them a visit and have a chat, accompanied with their financial situation up to date if they think it's necessary. So they have no choice, no hiding things for them.
Individuals
Before this measure was introduced, taxman could only access your accounts in case of suspicions of fraud, money laundering or any illicit activity and even then they needed a court order in order to do that. Banks on the other hand had the obligation to report any suspicious activity, plus transactions exceeding the limit of €10,000 (if I'm not mistaken). So if you were dealing with large transactions you had to make sure to fill out the memo with necessary explanations and be covered in case you were called to the principal's office.
What Now?
The new measure needs to be implemented till Monday, 11 January 2021, by all EU member states. Maybe in other European countries it's already implemented, I don't know but my country is always the last on any list, except on those about bad things.
I'm curious to see how taxman is going to play with the new toy. They can play nice or .... I guess we'll see. Oh, by the way, UK is not EU member anymore :)
So what do you think?