Survival of the Richest

Slovenia
In May 2016, the Financial Administration published 100
“Financial flows to tax havens are
decisions about additional tax liabilities of companies
problematic, particularly when it is with
that do business with entities associated with low tax
a view to avoiding payment of taxes in
jurisdictions. The purpose was preventive action and, in
particular, highlighting aggressive tax planning schemes.
accordance with the provisions in force
674
in the respective country of residence,
Other debated issues have included the sale of the third
biggest bank Nova KBM (NKBM) by a state-owned holding
and thus with consequences for the
company, to a mailbox company named Biser Bidco. 675 The
public finances. The disclosure of data
Bank of Slovenia stated that NKBM will be owned by Biser
revealing corruption or other possible
Bidco, which will be owned by trusts indirectly owned by the
links is welcome. However, in the quest
European Bank for Reconstruction and Development (EBRD)
and Apollo. Biser Bidco was registered in Luxembourg
for transparency, this data should be
by Apollo Global Management LLC, with minimum capital
interpreted cautiously.”
contribution only three weeks before NKBM was bought.
This raised questions on whether there will be any
Miro Cerar
hidden owners behind Biser Bidco and whether the use of
Prime Minister 670
Luxembourg was due to tax reasons. 676
The Panama Papers also disclosed information about
numerous Slovenians doing their business through
Overview
mailbox companies in various tax havens, with profiles
The Slovenian government has continued its efforts to
ranging from business professionals to professors, sports
enhance tax collection during the past year. Many initiatives
personalities and two Slovenian consuls (to Liechtenstein
have been aimed at tackling domestic challenges to the
and Luxembourg). 677 The company UPC Svetovalna skupina
tax system such as the informal sector, also known as the
was highlighted as the entrance point to Panama and other
“grey economy.” For example, as of the beginning of 2016
secrecy jurisdictions for many Slovenes (UPC was opening
Slovenia implemented an obligation for taxable persons to
mailbox companies and providing support). 678
report cash turnover only through specific electronic cash The Ministry of Finance has said that they wish to do
registers (‘tax cash registers’), providing for traceability and everything to strengthen their fight against tax havens, but
enabling a better trail for audits. 671
cooperation with other countries is most needed, and that
There have also been changes made to rules on value added
this is why they work on multilateral agreements within
tax (VAT). Higher VAT rates, which were introduced as a
the OECD or EU. 679 As regards the police, priority will be
temporary measure in 2013 to overcome the financial crisis,
given to pre-trial proceedings related to the protection of
became permanent (changing from 20 per cent to 22 per
the financial interests of the state in connection with tax
cent and from 8 per cent to 9.5 per cent). 672
havens. 680 The Ministry of Justice has changed the definition
of tax evasion to enable law enforcement authorities to
The government has increased corporate income tax from effectively prosecute and punish those engaging in it. 681
17 to 19 per cent, and increased the effective corporate tax
rate from 11.5 to 13.2 per cent, starting January 2017. 673 As a response to the Panama Papers, two parliamentary
committees have also called on the government to prepare
a list of companies, directly or indirectly owned by the
state, that have (themselves or through their affiliates)
opened a bank account abroad, and to produce a written
report on the effectiveness of measures taken against tax
evasion and avoidance. 682
Survival of the Richest • 87