From December 10–12, 2018, a major three-day conference organized by ProFuturion accounting s.r.o. was held in the High Tatras. on the topic of Legislative Changes in the Tax Area Effective January 1, 2019 + Corporate Income Tax Return for 2018. In addition to other prominent lecturers and specialists in the fields of taxes, payroll, and contributions, such as Ing. Mgr. Martin Tužinský, PhD., Ing. Vladimír Ozimný, and Júlia Pšenková, representatives of the law firm JUDr. Róbert Hronček and Mgr. Andrea Domény also actively participated, delivering a presentation on the topic “Beneficial Owners: New Legal Obligations Regarding Their Identification and Record-Keeping.”
The conference was organized and led by Ing. Mgr. Martin Tužinský, Ph.D., a member of the Slovak Chamber of Tax Advisors and a specialist in taxation and accounting, who guided the participants through the entire conference. The conference was conducted with the aim of providing up-to-date insights into approved and pending legislative changes affecting accountants and their specific obligations, including practical tips and real-world examples.
Lecturers from the law firm HRONČEK & PARTNERS s.r.o. provided a new perspective on the issue concerning the obligations of all business entities, effective November 1, 2018, to identify and register the ultimate beneficial owner in the Commercial Register and other relevant registers in which the respective business entities are registered. In this context, the presentation also covered the obligations of business entities and, specifically, of accountants, auditors, and tax advisors as obligated persons within the meaning of Act No. 297/2008 Coll. on the Prevention of Money Laundering and the Financing of Terrorism, as amended.
During the lecture, participants were guided through all the obligations arising for business entities under the legislation, and at the same time, the practical steps necessary to fulfill them were explained. Great emphasis was placed on recognizing the significance and importance of fulfilling these obligations. “It is important to realize that the obligation to register beneficial owners in the Commercial Register or another relevant register in which the legal entity is registered is not the only one and cannot be separated from other related obligations; therefore, simply making the entry in the register is not sufficient. The entities concerned are, above all, required to correctly identify the beneficial owners using the exact procedures prescribed by the relevant legislation, and they must also maintain the related records in paper or electronic form for the period required by law.“ They also pointed out that the obligation of legal entities to identify their beneficial owners and maintain the corresponding records with all the details required by law took effect as of March 15, 2018, and stems from Act No. 297/2008 Coll. on the Prevention of Money Laundering and the Prevention of Terrorist Financing, as amended. The parties concerned tend to overlook this obligation, even though failure to comply may result in sanctions imposed by the state.
All business entities must enter data on beneficial owners into the Commercial Register of the Slovak Republic by December 31, 2019, at the latest. This data will then be transferred to the central register of legal entities established under Act No. 272/2015 Coll.
Special attention was given to clarifying issues related to the prevention of money laundering and the financing of terrorism under Act No. 297/2008 Coll., and specifically to the obligations of accountants, auditors, and tax advisors, who, as obligated persons under the relevant law, have a relatively broad scope of responsibilities. “The fundamental obligation of accountants, auditors, and tax advisors in relation to compliance with procedures under the law and client due diligence is to have a program of their own activities in place with all necessary elements, e.g., defining the procedure for client identification, performing due diligence, maintaining documentation, or the procedure in the event of suspicion of an unusual business transaction. Of course, simply drafting an internal compliance program is not sufficient, and obligated entities must apply these procedures in their daily practice.“
It was evident that the topic of the lecture captured the audience’s interest. The entire lecture took the form of a discussion with active participant engagement. The interactive conference environment made it possible, with the support of the law, to effectively explain the fundamental focus and purpose of the new legislation, thereby dispelling the initial concerns of conference participants; we therefore believe that the lecture met the expectations of the conference attendees.
Our law firm is intensively engaged in this issue, specifically the full scope of obligations of obligated entities under the Act on the Prevention of Money Laundering and the Financing of Terrorism. We are also prepared to provide you with assistance and advice in fulfilling the obligation to properly identify beneficial owners, prepare the necessary records in accordance with legal requirements, and ensure the registration of beneficial owners in the Commercial Register or other relevant register in which the legal entity is registered (Register of Foundations, Register of Funds, and others). If you are interested in consulting and our services, please do not hesitate to contact us for a non-binding offer here.
