The government has given the go-ahead for Lithuanian tax authorities to start scrutinising Lithuanians' bank accounts for tax evasion and unaccountable sources of income as the State Tax Inspectorate also announced all citizens had until the end of June this year to declare all gifts and undeclared loans since 2004 used to make purchases of over €15,000 or face a retrospective tax of 15% on the gifts.
State Tax Inspectorate (VMI)
© DELFI / Mindaugas Ažušilis

Lithaunians with savings of over €5,000 in their account or with a turnover of more than €15,000 in a year will be targetted for examination by the State Tax Inspectorate. The STI move on gifts specifically applies to cash gifts which were used for example by a son or daughter to buy an apartment which if undeclared as gifts will attract a retrospective tax rate of 15%, reports Verslo Žinios.

Financial institutions will have to provide information to the State Tax Inspectorate about account balances each year on December 31, including the total amount of money moving through the account during the year and any debt obligations to a particular bank or credit union.

According to STI data, only 9% of the population went over the €15,000 threshold in 2014 and only 11% had more than €5000 deposited in commercial banks at the end of June in 2014.

Finance Minister Rimantas Šadžius announced that the government had approved the move yesterday.

“The government has adopted a decision on how to implement what the parliament has established last year. Financial institutions will have to provide minimum information about people‘s and businesses‘ accounts to the State Tax Inspectorate (STI),” he said.

DELFI

Prime Minister: several ministers to be replaced in Cabinet reshuffle

Lithuanian Prime Minister Saulius Skvernelis says more than one ministers will be replaced in the...

Pulkauninkas resigns as chief forest officer

Marius Pulkauninkas is set to leave the post of Lithuania's chief forest officer on August 1 after...

Nauseda to discuss future government with ruling parties

Lithuanian President Gitanas Nauseda plans to discuss the government formation with...

Parliament will not consider LRT ad ban bill

Lithuanian lawmakers decided on Tuesday not to consider a proposal to ban all advertising on the...

Nauseda backs Poland in judicial reform dispute with Brussels

Lithuanian President Gitanas Nauseda on Tuesday said he's against the proposal for the European...