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Approve Measures Of Derogation Of Banking Secrecy, As Well As The Taxation To A Special Rate Of Additions Of Assets Exceeding 100 000 Do Unjustified By The Amendment To The Code Of The Personal Income Tax, Approved P

Original Language Title: Aprova medidas de derrogação do sigilo bancário, bem como a tributação a uma taxa especial dos acréscimos patrimoniais injustificados superiores a ¿ 100 000, procedendo a alteração ao Código do Imposto sobre o Rendimento das Pessoas Singulares, aprovado p

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PORTUGUESE COMMUNIST PARTY

Parliamentary Group

PROJECT-LAW No. 766 / X-4.

Derogation from banking secrecy

(Tenth ninth amendment to the General Tax Act, passed by the Decree-Law n.

398/98, of December 17 and Sixth Amendment to Decree-Law No. 62/2005,

of March 11)

1. Introduction

The Country has been witning an intense debate on combating corruption and enrichment

illicit, and also on the instruments that may allow to improve the conditions under which the

State can wage that combat, specifically those with the waiver of the

banking secrecy. In this latter aspect, the different positions tend to lose rationality

advisable to the treatment of what, essentially, is a matter of democracy, of

citizenship and transparency in a society that one wishes and argues for more just and

developed. These were always the reasons that motivated the CFP to come up with the solutions and

proposals that have been leading to all budget debates in this legislature, in addition to the

have also dealt with in the framework of autonomous legislative initiatives. It doesn't move us-neither

could move to a Party that only in the X legislature has presented, on multiple occasions, several

proposals for the elimination of banking secrecy-no intention to take advantage of the current

pre-election period, nor does the afman who seems to want to turn the political issues into

runs to win a any "yellow sweater".

It matters, in this context, to remember the essential aspects of the evolution of thought and the

solutions presented by the different parties over the course of the current legislature. That's what

we propose to also do with the presentation of this Project-Law.

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2. Legislative Background

Bank secrecy was consecrated in 1975 through the Organic Law of the Bank of Portugal,

approved by Decree-Law No. 644/75 of November 15 and reinforced by the Decree-Law n.

729-F/75, of December 22. Several other government resolutions have strengthened

subsequently the principle of secrecy to "ensure the interest of the citizen", ending

even the Decree-Law No. 475/76, of June 16 for penalizing the breach of secrecy.

Legislative developments continued in the subsequent years always with the same orientation as

strengthen banking secrecy, (Decree-Law No. 2/78, of January 9, Unpacho Normative 357/79,

among other possible examples). Only a few years later this trend is punctually

waged, establishing Law 45/86, of October 1 for the first time, some exceptions and

conferring some powers, although very restricted and conditioned, to the High Authority against

the Corruption. Later, the Decree-Law 298/92 of December 31, allows for new exceptions

concerning information to be provided to the Bank of Portugal and the Stock Market Commission

Real estate. The exception conferred on the CMVM is particularly relevant as it allows you to

investigate and produce evidence on doubtful situations for the market's interests

furniture, by way of derogation from banking secrecy, without having it beforehand

soccur of any authorization or to submit to any instance permission

judicial.

Contradictory (or perhaps not), either the Code of Procedure and the Tributal Process,

wants the General Tax Act to keep the administration public, in particular the administration

tax and tax, fully unable to access reserved banking information

to substantiate and determine dubious tax situations of taxpayers. The general rule

continues, thus, to be the maintenance of banking secrecy, not allowing the

tax administration can use the same powers of access to banking information that

are granted to the supervisory institutions.

In recent years, some legislation has been passed in the meantime that extends, albeit in a way

insufficient, but even paralyzing, the ability of the tax administration to access the

bank information: the Decree-Law 6/99 of January 8 set out conditions to apply for

information protected by banking secrecy, constituting the first time it has established itself

possibility of the tax administration being able to access certain information under

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reserve of bank secrecy; Law No. 5/2002 of January 11 set standards for breaking

of professional secrecy in the context of the widespread combat of economic crime,

allowing access to tax information in the face of evidence of certain crimes; Law No 30-

G/2000 that amended the General Tax Act, (setting out conditions of derogation from secrecy

bank and relevant tax reporting obligations), and the Code of the

Procedure and of the Tributal Process, (setting conditions for the special process of

derogation, including in the case of interposed resources by the taxpayer); finally, Law 55-

B/2004, of December 30, State Budget Act for 2005, introduced some

additional changes to those already introduced by Law 30-G/2000 in the General Tax Act, passing the

provide for, in a conditionable manner, the derogation of banking secrecy in other situations.

3. Legislative initiatives and proposals during the X Legislature

3.1 . On the part of the Government came up in this legislature a proposal for a law, the Proposal for Law No

85 /X, that changed the " Procedure and Trial Process Code for instruction of

gracious complaint ".

This Proposal has fallen to the 1 th Commission of Constitutional Affairs, Rights, Freedoms and

Guarantees and the 5 th Commission, the Budget and Finance, having been published in Journal of the

Assembly of the Republic, II Series A n. 132 /X/1 of July 29, 2006.

To be debated in conjunction with the Government's legislative initiative, they gave input

some time later, in September 2006, two Projects Law, one from the Left Bloc,

with the paragraph 315 /X-" Determine the derogation of banking secrecy as an instrument for the

combating tax fraud ", another from the PSD, to which it was assigned the n. 316 /X-" Derogation from the

bank secrecy for the purpose of combating fraud and tax evasion ".

The debate of the three legislative initiatives took place on October 6, 2006, all being

remitted without a vote, for the two of the above cited parliamentary committees, having, in the

circumstance was drawn up by the Budget Committee a report only on the

Proposal for Government Act as the two other projects-law did not give entry to the

Commission in good time for the purpose.

The Proposal for a Government Act intended to amend Article 69 of the Code of Procedure and of

Tax Proceedings, approved by the Decree-Law No. 433/99 of October 26, and its

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subsequent amendments, with the aim of relaxing the lifting of bank secrecy in

case of submission of gracious claim by the taxpayers. For this, the Proposal for Law

has established that, with the submission of a graceful complaint by a

taxpayer, the instructor body of the same person would have a right of access to information and

bank documents relating to the tax situation the subject matter of complaint,

regardless of the consent of the taxpayer and without the need for permission

judicial.

On this matter, the Government Programme took aim at the adoption of a

" regime equal to European best practices, particularly in relation to banking secrecy

for tax purposes ". However, on the occasion of the discussion in Plenary of the Report on the

Combating Fraud and Tax Evasion, on March 1, 2006, the Government, through the Minister

of State and Finance, backtracked very significantly, announcing at the time the

intention to present, during the first half of that year, a proposal that, " à

similarity of regimes already adopted in the European Union, it would enshrine the lifting of secrecy

banking following the submission of a complaint " .

In the State Budget Report itself for 2006, it was manifested the intention of

propose an amendment to the current law in the sense that, " to the similarity of the Belgian regime, if

could associate the administrative dispute of tax acts with the necessary access to the

information protected by banking secrecy, in the exact extent to which it was essential for the

administrative decision " . The Government considered that " such would be, too, a means of deterring the

less sustained litigation " .

Concretely, the Law Proposal proceeded to the addition of three new figures to the article

69. of the Code of Procedure and of the Tributary Process, with the following content:

. No. 2 passed to enshrine the right of the appellate body of the complaint to order the

access to information and banking documents relating to the situation subject to the complaint,

where it was justified in the face of the facts alleged by the claimant and

regardless of your consent;

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. Paragraph 3 passed to establish that, to this end, the instructor organ would request the

claimant, by simple post office, for within ten working days provide the information

and the relevant banking documents for the assessment of the complaint;

. No. 4 passed to provide that, should the requested information not be provided on the deadline

indicated, or were deemed to be insufficient, the instructor organ would proceed to notification of the

credit institutions, financial corporations and too many entities, instructed with the

decision to access the information and banking documents, which they should provide the

elements requested within ten working days.

As for the BE Draft Law, it set out an addition to Article 79º of the Decree-Law No.

298/92, of December 31, with the respective amendments. It was inspired by the Directive on

Savings to propose " mechanisms for access to relevant information on operations of

deposits and financial or similar applications held at financial institutions, for use

exclusive to combat evasion and tax fraud ". Concretely, propounded:

. add a point to paragraph 79º of Article 79º of the Decree Law 298/82, 31 of

December, (which establishes the general regime of credit institutions and societies

financial), which would be passed on: " to the Ministry that guardianship the tax administration,

within the scope of its activity of monitoring the compatibility between movements and

operations of financial institutions and the tax returns of taxpayers "

allowing as soon as the Tax Administration to stop the same power of access

to bank information that already held the Bank of Portugal and the CMVM;

. create a new legal device for access to information covered by banking secrecy

articulated in the following aspects:

-The tax administration passed on to be able to access the relevant information on

deposit transactions and financial applications of the taxpayers, allowing to check the

compatibility between the total deposits and applications and the total of the yields

declared for purposes of payment of the income tax of persons

singular;

6

-passed to compete with the Ministry of Finance to fix the rules of processing the

information and application of the professional secret that is required in the processing of that

information.

Finally the PSD Draft Law was intended to amend the Article 63º-B completely

of the General Tax Act passed by the Decree-Law No. 398/98 of December 17 and successive

changes.

Invoking also the need for increased cooperation between administrations

tributaries of the different countries, in particular within the OECD countries, the PSD stated

recognize as indispensable a clear reinforcement of the power of derogation from banking secrecy

on the part of tax administrations, advocating the need to go to the meeting of the

best practices already taken up by other countries, with special prominence from Spain, from the

Finland, Germany and the USA.

Finding that, in the prevailing legislation, the conditions for the decision to waiver secrecy

bank, provided for in article 63-B of the General Tax Act, are in many situations

established in a conditioned manner, subject to restrictions or, in certain cases, liable to

"additional requirements, the express judicial authorization and the prior hearing of the target", the PSD

states that the most advanced OECD countries in this matter " already legislaram in the sense of

eliminate the generality of the marked restrictions ".

It is in this context that the PSD proposes to maintain only one of the existing constraints, to which

respects the information provided to justify the appeal to the credit. Article 63º B of the Law

General Tributary would then be replaced by the following:

" 1-A tax administration has the power to access all information or

bank documents without dependence on the consent of the holder of the elements

protected, whenever they request it to fight tax evasion or fraud.

2-Except for the provisions of the preceding paragraph the information provided for

justify recourse to credit, and that they are irrelevant to the combating of fraud and

tax evasion.

3-The requests for information referred to in paragraph 1 shall be the competence of the Director

general of Taxes or the Director General of Customs and Special Taxes of

Consumption, or its legal substitutes, with no possibility of delegation.

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4-Failure to comply with the obligations set out in this article shall not be founded on

banking secrecy ".

For well to be aquilateral of the content and significance of the changes proposed by the PSD,

transcribe followed by the full text of Article 63-B of the General Tax Act, in its

wording of the height

" Article 63-B

Access to information and banking documents

1-A The tax administration has the power to access all information or bank documents without dependence on the consent of the holder of the protected elements:

a) When there are indications of the practice of crime in tax matters;

b) When there are concretely identified facts indicted from the lack of veracity of the declared.

2-A The tax administration has, as yet, the power to access the banking documents directly, in the situations of refusal of its display or authorization for its consultation:

a) When it deals with supporting documents of accounting records of the IRS and IRC taxable persons who find themselves subject to organized accounting;

b) when the taxpayer enjoys tax benefits or privileged tax schemes, and there is a need to control the respective assumptions and only for that purpose.

3-A tax administration has, as yet, the power to access all banking documents, except for the information provided to justify the recourse to credit, in the situations of refusal to display those documents or authorization for their query:

a) When you check the impossibility of direct and accurate proof and qualification of the taxable matter under Rule 88º and, in general, when the assumptions for the recourse to an indirect assessment are checked;

b) When you check the situation provided for in point (f) of the article 88. or the income declared at IRS headquarters deviate significantly, to less, without justified reason, from the income standards that reasonably may allow the manifestations of wealth evidenced by the taxable person, under the terms of the article 89-The;

c) When it is necessary, for tax purposes, to substantiate the application of public subsidies of any nature.

4-The decisions of the tax administration referred to in the preceding paragraphs shall be substantiated with express mention of the concrete grounds justifying them and are of the competence of the Director-General of the Taxes or the Director General of Customs and of the Special Taxes on Consumption, or its legal substitutes, without possibility of delegation.

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5-Acts practiced under the jurisdiction set out in the preceding paragraph depend on the prior hearing of the taxpayer in the cases provided for in paragraphs 2 and 3 and are liable to judicial remedy with merely devolutive effect, except in the situations provided for in paragraph 3, where the appeal has suspensive effect.

6-In the cases of deferrals of the appeal provided for in the preceding paragraph, the evidence elements in the meantime obtained cannot be used for any purpose in disfavour of the taxpayer.

7-The entities that find themselves in a domain relationship with the taxpayer shall be subject to the banking information access regimes referred to in paragraphs 1, 2 and 3.

8-The access of tax administration to relevant banking information relating to relatives or third parties who find themselves in a special relationship with the taxpayer depends on express judicial authorization, after hearing of the visage, obeying the requirements set out in paragraph 4.

9-The scheme provided for in the preceding paragraphs shall be without prejudice to the legislation applicable to cases of criminal offence investigation and may only have for the purpose of transactions and banking movements carried out after it came into force, without prejudice to the scheme beholdant to the previous situations.

10-For the purposes of this law, a bank document shall be deemed to be any document or record, irrespective of the respective support, in which they are entitled, voucher or record transactions practiced by credit institutions or financial companies in the scope of the respective activity, including those referring to operations carried out upon use of credit cards. "

In the meantime, the CFP has put forward several proposed amendments and additions to Article 63 B

of the General Tax Act, essentially centered on the following aspects:

-derogation from banking secrecy, without pendency of consent, in cases of

debts to Social Security, (thus giving continuity to the proposed in the Projects of

Law 66 /IX and 376 /IX that it had presented in the previous legislature and which had then

been rejected by the majority PSD/CDS, notwithstanding having counted on the votes

favorable PS, the BE and the Greens), by adopting a new paragraph at number one of the

supra cited article. The registration of the PSD vote, concerning those two

projects voted on in the IX Legislature, shows well the deep change of position

of this party in this matter, easily verifiable in the text of the draft-law 316 /X,

ago quoted. Likewise, although in the opposite sense, it positioned itself this time the

Socialist party, which having viabilized for twice that alteration, ended

this time for rejecting all the proposals that the CFP has made.

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-elimination of numbers five and six and amendment of the number eight of the same article

63º-B with the purpose of the derogation of the banking secrecy provided for in the situations therein

described leaving henceforth of being conditioned or being able to be the subject of

judicial contesting with suspensive effects.

The CFP also submitted draft amendments to Decree-Law 62/2005 of March 11,

which has transcribed into domestic law the "Savings Directive", proposing that also

it would be mandatory to be made the information of the income (interest) of people's savings

singular with residence in national territory.

The remaining parties have also ended up with proposals for amendment at the headquarters of

specialty, either to the proposed Law of the Government, or to its own draft laws. The

BE ditched the text that created a new device for access to covered information

by the banking secrecy and, in its replacement, also presented a new articulate for the

article 63º-B of the General Tax Act, following closely the proposed in the Draft Law 316 /X, da

authorship of the PSD, densifying the numbers 1 and 2 and presenting a new number 4. The ER came

to propose an amendment to Article 110º of the Code of Procedure and of the Tributary Process,

to also allow the possibility of access to relevant bank information in the

situations in which there has been judicial challenge; it has adopted an amendment to Article 63 of the

General Tax Law to compel credit institutions and financial companies to duty

of the communication of cross-border transfers to some entities with regimes of

special taxation; and he has adopted a new paragraph at number one of Article 63º-B of the same LGT

to proceed to the elimination of banking secrecy in the situations where there was no delivery of

declaration of income. The PSD has substantially altered its proposal by abandoning the

announced aim to make a profound change to Article 63º-B of the General Act

Tax, and passing on to proposing only changes to the number one of the current wording of that

article: added two points, one to derogate from bank secrecy, without dependence on

consent, in the situations in which no statement has been made,

(moving on to identify with the amendment also proposed in the same article by the PS), another

to derogate from banking secrecy when this proves necessary in combating evasion and fraud

tax, but maintaining without any other amendment or addition the current text of the

remaining numbers of the said LGT article.

The final text of replacement of the Government Act Proposal was only passed with the votes

of the Socialist Party, having been aroused the preventive verification of the constitutionality of the

10

new diploma by the President of the Republic. The Constitutional Court turned out to be right

to the doubts raised by the Presidency of the Republic-doubts that had already been raised

on several occasions during the different phases of the debate, morally because of the solutions

adopted by the Government and by the majority PS to determine the lifting of bank secrecy

only for anyone who would claim or challenge the decisions to liquidate the administration

tax.

Returned the document to Parliament, the Socialist Party has never taken any more

initiative to correct or purge of the unconstitutionalities pointed out.

3.2. In the framework of the State Budget for 2009, the Government, in articulation with the

bancassurance of the ER, introduced an amendment, announced as an element to fight evasion

tax. Without resuming any of the amendments of the law deemed unconstitutional by the Court

Constitutional, not even the amendment to Article 63º-A of the General Tax Act that it was aimed at

obtain information from financial institutions on "cross-border transfers" having

as recipients entities based in "tax havens", the Government then proceeds to

changes in form and wording of the numbers one and two of Article 63 of the LGT. On the last

of these cases, the approved amendment restricts the scope as that the information on the "

of the payment flows with credit cards ", provided therein, is to cover only those

taxable persons with income from category B of certain sectors of activity, rather than

be able to cover taxable persons with income from category B, regardless of the

sector of activity.

3.3. In Amending Budget approved in July 2005, following the entry into

functions of the present Government, the CFP, and also the BE, have submitted draft amendments

aiming to extend also to residents in Portugal the obligation of banking institutions and

financial reporting the tax administration on the income from savings

deposited. The CFP amended Articles 1 and 15 of the Decree-Law No. 62/2005 of March 11,

which had transposed in an insufficient and unsatisfactory way the Directive 2003 /48/CE, known

by "Savings Directive".

3.4. The same was succeeding in the successive budgetary processes, in the years 2006, 2007,

2008 and 2009.

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During the debate for the approval of the State Budget for the year 2006, the CFP, for

in addition to resuming the proposals presented at the headquarters of the 2002 Rectificative Budget,

referred to in the previous point, it again insists with the amendment of Articles 63-to-and 63-B of the Act

General Tributary, proposing the elimination of the information protected by banking secrecy

provided for in those articles, following up on what before it had been legislated in Law 30-

G/2000 of December 29, and which had been the subject of several legislative initiatives of the CFP,

during the ninth legislature. In turn, the BE, in the budget debates concerning the

State budgets for 2006 and for 2007, submitted exclusively for proposals for

oblige to the registration and characterisation of financial transfers in excess of ten thousand euros,

proposing its mandatory communication to the Ministry of Finance and the Bank of Portugal.

For the State Budget 2008, the CFP submitted a proposal for amendment of the

article 63.-B of the LGT, which corresponded to the changes presented in the debate of the Proposal of

Law that the Government had submitted in 2006/2007 (paragraph 3.1.) and which was eventually considered

unconstitutional. With concrete solutions, the CFP intended to avoid the impuriments with effect

suspensives in the elimination of banking secrecy. However, in this budget debate, the CFP

presented for the first time a further proposal to amend also Article 63-C of the

same General Tax Act, which would allow it to also allow, under the same conditions and

circumstances provided for in Article 63-B, the access to bank information, for tax purposes,

of the accounts exclusively allocated to the business activity. The BE, meanwhile, reproduced the

proposal of the previous two years (relating to financial transfers), and the full text of the

proposed amendment to Article 63-B of the LGT and Article 79 of the Decree-Law 298/92, of 31 of

December, which I have already presented in the debate of the government's thwarted proposed law, behind

quoted.

For the State Budget 2009 and for the recent Rectificative Budget, approved in

January 2009, whether the CFP, or BE come back to present the same solutions and proposals,

mentioned above, which they had presented in the debate on the State Budget of

2008. Who appears for the first time with proposals in this regard is the PSD who, for the

State budget for 2009, submitted a proposal for amendment of Article 63-B of the

LGT, adding two points to their number one, and passing on to allow access to

bank information when no statement has been made or when

make it indispensable to combating evasion and tax fraud. It has thus fully resumed the

proposed amendments submitted by the PSD in the debate in the specialty of the proposed law

of the government that the Constitutional Court would come to consider unconstitutional.

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4. The need for derogation from secrecy

Fifteen days ago, the Parliament discussed and approved the BE Bill of Law 712/X, which

" determines the waiver of bank secrecy as an instrument for combating fraud

tax ". The proposed changes in this initiative reproduce without any change to the

contents of the proposals made by this party to the Budget 2008, 2009 and to the

recent Rectificative Budget, of modification of Article 63-B of the General Tax Act and of

addition to Article 79º of Decree-Law 298/92 of December 31.

In the meantime, the Government has put forward a legislative initiative announced to combat the

"illicit enrichment" through a majoration of applicable fees. Notwithstanding not if

to know still the exact contours of this initiative, as it has not given up, so far,

entry into the Assembly of the Republic, it appears to be an unreasonable option as, in the

fund, does not criminalize illicit enrichment, passing only to mull it more

heavy. A crime of this nature can never be supported (legalized) through the

payment of a higher rate. A crime of this nature undermines the foundations of the regime

democratic, it has to be countered as it is, as a crime.

In this framework, the CFP has put forward a legislative initiative to tipify and criminalize the

illicit enrichment that has been debated and rejected by the PS, in conjunction with one another on

the same theme, from the authorship of the PSD, during the last potent scheduling of this party.

The derogation of banking secrecy, essential tool to combat evasion and the

tax fraud, to detect and combat crimes of capital bleaching, from tracts

diverse and sustaining terrorism, understands the CFP that it is time to allow the

elimination of bank secrecy can be used, should there be substantiated doubts of the

tax administration, for all taxable, individual or collective subjects, on equality

of circumstances.

It is not acceptable that who is a candidate for the beneficiary of the Social Insertion Throne or the

Supplementation for Elderly must have to accept the derogation from the

bank secrecy and allow for indiscriminate access to their respective bank accounts, (if

such taxable persons have liable income from allowing for the detention and maintenance of

any bank account), and on the other hand, who, for example, earn tax benefits or

13

supports from community funds continue to benefit from a conditioning situation,

that in the practice redunda in hindrance, from access to banking information even when

there are founded doubts of the tax administration on the respective tax situation.

Having been faced with the impossibility of formally presenting and debating the

their proposals during the potent debate that the BE has scheduled, the CFP understands that it is still

time to do so.

That is why the CFP presents in this Project-Law several amendments to Articles 63, 63.-A, 63.

and 63.-C of the LGT, which allow to abetting in the waiver of bank secrecy the taxable persons

at IRS headquarters and in IRC headquarters, as we always have it.

We propose to lapse banking secrecy through non-delegated and properly-delegated initiative

substantiated by the Director-General of the Taxes or the Director General of Customs and the

Special Taxes on Consumption. The proposed changes will allow, in some cases, the

access, in those circumstances, to the bank information of taxable persons without penning

of consent, in other cases, the access to bank information of taxable persons or of

people and family with special relationship with the taxpayer, always after hearing

mandatory preview and also framed by the aforementioned statement of reasons.

We propose, however, to go even further, presenting also other changes

legislative proposals that will repose some ideas that have been presented throughout this

legislature, be those with regard to the reporting obligation to the Tax Administration of

transfers of capital to tax havens, be it to make information mandatory, to

tax purposes of interest earned by savings of residents on national territory.

Thus, the Deputies of the CPP Parliamentary Group, below signed, present, under

of the applicable regimental and constitutional provisions, the following Draft Law:

Article 1.

Amendment to the General Tax Act The articles 63., 63.-A, 63.-B and 63.-C of the General Tax Act, abbreviated by LGT, approved by the Decree-Law No. 398/98 of December 17, shall be replaced by the following:

14

" Article 63 Inspection

1. [...].

2. Access to information protected by professional secrecy or any other

legally regulated duty of secrecy depends on judicial authorization, under the applicable law.

3. Without prejudice to the preceding paragraph, access to information protected by banking secrecy is done in the terms set out in Articles 63-63-B and 63 .ºC.

4. [Previous n. 3].

5. The lack of cooperation in the realization of the representations provided for in paragraph º1 shall be legitimate only when they entail them:

a) access to the housing of the taxpayer; b) Consultation of elements covered by professional secrecy or other duty of

secrecy legally governed by the exception of the banking secret in accordance with paragraph 3; c) the access to facts of the intimate life of citizens; d) The violation of personality rights and other rights, freedoms and guarantees

of the citizens, in the terms and limits provided for in the Constitution and the Law.

6. [Previous n. 5].

7. The notification of credit institutions, financial companies and other entities, for the purposes of allowing access to elements covered by the secrecy to which they are bound, in cases where there is the legal possibility of the administration tax to require your derogation, you must be instructed with the following elements:

a) In the cases of direct access without the need for consent of the holder of the

protected elements, copy of the reasoned decision delivered by the Director General of Taxes or by the Director General of Customs and Special Taxes on Consumption, pursuant to Article 63 (4);

b) In cases of direct access with mandatory prior hearing of the taxable person or

of relatives or third parties who find themselves in a special relationship with the taxpayer, provided for in paragraphs 5 and 8 of the article. 63.-B, copy of the reasoned decision delivered by the Director General of Taxes or by the Director General of Customs and Special Taxes on the Consume and copy of the notification directed to the effect of ensuring the said prior hearing.

8. [previous n. 7].

Article 63-The Information relating to financial operations

1. [...].

15

2. Credit institutions and financial companies are obliged to report to the Directorate General of Taxes by the end of the month of July each year by means of official model declaration, approved by the Minister of Finance, the financial transfers that have as an entity recipient located in country, territory or region with more favorable privileged taxation regime that are not relative to income payments subject to some of the communication regimes for tax purposes already provided for in law or operations carried out by legal persons of law public.

3. [Previous n. 2].

4. [Previous n. 3].

Article 63-B

Access to information and banking documents

1-[...]:

a) [...];

b) [...];

c) [...];

d) When to check the proven existence of debts to the Social Security;

e) Where this proves indispensable in combating evasion and tax fraud;

f) When no statement has been made.

2-[...]:

a) [...];

b) [...];

3-[...]:

a) [...];

b) [...];

c) [...].

4-[...].

5- The acts carried out under the jurisdiction set out in the preceding paragraph presuppose the prior hearing of the taxpayer in the cases provided for in paragraphs 2 and 3 but do not depend on the consent of the holder of the protected elements.

6-[Revoked].

16

7-[...].

8- The access of the tax administration to relevant banking information concerning

family members or third parties who find themselves in a special relationship with the taxpayer obeyed the requirements set out in paragraph 4 and shall also be realized in accordance with paragraph º5.

9-[...].

10-[...].

11 -The tax administration provides the ministry of guardianship with annual statistical character information on the processes in which the lifting of bank secrecy occurred, which is referred to the Assembly of the Republic with the submission of the Proposal for a Law of the Budget of the State.

Article 63-C

Bank accounts exclusively allocated to business activity

1-[...].

2-[...].

3-[...]

4- The tax administration has the power to access all information or bank documents relating to the account or accounts referred to in the n. 1 without dependence on the consent of the respective holders.

5-A The possibility provided for in the preceding paragraph shall be established on the same terms and

circumstances of Article 63-B. "

Article 2.

Amendment to Decree-Law No 62/2005 of March 11 The article 1 para. of the Decree-Law No. 62/2005 of March 11, which transposed into the internal legal order Directive No 2003 /48/CE of the Council of June 3 on the taxation of income from savings in the form of interest, is replaced by the following:

" Article 1 Subject

The present diploma transposes to the national legal order Directive No 2003 /48/CE of June 3 on the taxation of income from savings in the form of interest, establishing the scheme for obtaining and providing information by the agents payers with respect to the income from savings in the form of interest of which are actual beneficiaries natural persons residing in national territory or in another member state of the European Union. "

17

Article 3 Addition to Decree-Law No 62/2005 of March 11

The article is added 16. to Decree-Law No. 62/2005 of March 11, which transposed into the internal legal order Directive No 2003 /48/CE of the Council of June 3 on the taxation of income from savings in the form of interest, with the following wording:

" Article 16 The Transitional Standard

The Government proceeds to the adaptation of the necessary standards of this Law in the 60 days following its publication with a view to its application to residents on national territory. "

Article 4 Entry into force

This Law shall come into force on the day following that of its publication.

Assembly of the Republic, April 30, 2009

The Deputies,

HONORIUS NOVO; BERNARDINO SOARES; JERONIMO DE SOUSA; ANTÓNIO FILIPE; AUGUSTINE LOPES; JOÃO OLIVEIRA; JOSÉ SOEIRO; JORGE MACHADO; MIGUEL TIAGO;

FRANCISCO LOPES; BRUNO DAYS