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Issue 23 (3)/ 2021

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Publication date: 30.09.2021

Licence: CC BY-NC-ND  licence icon

Editorial team

Editor-in-Chief Jolanta Gliniecka

Issue content

Dmitriy Kopin, Anna Kopina, Ulrica Muffatto

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 1-18

https://doi.org/10.4467/22996834FLR.21.017.14437

It is generally recognized that local self-government is the most effective way to meet the basic socio-economic needs of the population. It is local self-government that takes on those public law functions that, by their very nature, cannot be realized by the forces of the state.
The existing mechanisms of interaction between the state and local self-government are built on the basis of the principle of subsidiarity, aimed at supporting local budgets by the state, but they cannot always ensure sufficient and timely replenishment of local budgets.
So, for example, we are left to conclude that local government is unable to influence such parameters as the collection and distribution of taxes. Although tax revenues are partially distributed in favor of local government, municipalities are often forced to look for sources of additional funding, which can be carried out at the expense of the population.
The article aims to analyze the existing mechanisms for mobilizing funds from the population by municipalities in the world in general and in Russia in particular.

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Elena Vyacheslavovna Pokachalova, Elena Nikolaevna Pastushenko, Mikhail Nikolayevich Sadchikov

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 19-28

https://doi.org/10.4467/22996834FLR.21.018.14438

The article deals with the relationship between bank secrecy and tax transparency. It studies the issues of confidential information (which forms bank secrecy) being presented to tax authorities, also including the principle of providing information on request and automatic data provision within the framework of the Common Reporting Standard.
The comparison of bank secrecy and tax transparency is carried out from the viewpoint of its value for the society, state, and individuals. It is noted that the expansion of bank secrecy access for tax authorities can be used not only in tax control, but also to simplify the taxpayers’ payment procedure and other benefits connected with the confidential information, or bank secrecy. The given research paper analyses the problem of broad exemptions from the banking secrecy regime in tax control. The analysis is based on the axiological approach and comparative legal research method based on the analysis of bank secrecy restrictions in the legal systems of Switzerland,
Singapore and Russia. The scientific task is to determine the conditions and the necessary degree of bank secrecy restrictions in tax control.

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Peter Rakovský

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 29-46

https://doi.org/10.4467/22996834FLR.21.019.14439

In this article we introduce and analyse the main legal actions regarding the value added tax final regime legislation and we try to detect the most important measures to fight against tax frauds. The article tries to identify the individual actions that have already entered into force within the European Union countries (the Slovak Republic including) and actions which are in legislative procedure at this moment.

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Piotr Gajewski

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 47-62

https://doi.org/10.4467/22996834FLR.21.020.14440

This article deals with the issue of tax liability arising when taxpayers undertake economic activity in maritime areas. The research was conducted both on the grounds of direct taxes, indirect taxes and property taxes. The article verifies the hypothesis that the current provisions of Polish tax law do not fully comply with the tax authority granted to Poland as a coastal state in its maritime areas. The research method used in this study was a critical analysis, including a linguistic analysis of the provisions of tax acts and international agreements to which the Republic of Poland is a party. In addition, the research used the analysis of views of doctrine and jurisprudence of administrative courts and tax authorities.

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Wael Saghir

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 63-76

https://doi.org/10.4467/22996834FLR.21.021.14441

As businesses are actively incorporating technology as means of cost reduction and service provision, financial institutions have lately been one of the most active institutions in utilising information technology (IT) to their advantage.
Although technology presented financial institutions with many opportunities and opened the door for a new hybrid sector to be formed, this came with its share of disadvantages one of which revolves around cyber security. Combined with the complex nature of products and services offered online through non-traditional financial institutions, this meant that adjusting the regulatory framework governing such products, services and institutions has now become a must.
Since the current regulatory framework applicable on online banking does not differ much from that applied on bricks-and-mortar ones especially in terms of money laundering and deposit protection schemes, this paper recommends a hybrid, tech-centred, regulatory framework that is specifically designed to cater for financial institutions in order to offer users of these platforms higher levels of protection and suggests the creation of a joint regulatory and supervisory body that oversees and regulates activities of FinTechs. Such change should take into consideration the higher risk factor associated with online banking and the nature of service provision. The paper in its unique approach aims to inspire and influence change to further enhance customer protection and service provision of online banks.

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Lana Arzumanova

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 77-94

https://doi.org/10.4467/22996834FLR.21.022.14442

The article discusses an alternative way to settle a tax dispute through mediation. For the Russian law enforcement practice, this format of interaction is new, since the current law on mediation only since 2019 has established the possibility of its implementation in the public sphere of activity. At the end of 2020, the first precedent for considering a tax dispute through mediation appeared, which gave a positive result. The author discusses the pros and cons of using mediation in public legal relations and gives his vision of this process.

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Małgorzata Wróblewska

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 95-117

https://doi.org/10.4467/22996834FLR.21.023.14443

The WTO, which is composed of 164 Member States at different levels of development, currently plays an increasingly important role as a legal regulator on the global level. Simultaneously, the EU (which currently consists of 27 Member States) has introduced law at the regional level. Although these two organizations do have similarities, they also differ significantly from each other and in practice function in isolation. The WTO is an entity /with its own legal norms, whose aim is to support trade liberalization. On the other hand, the EU is notable for guaranteeing peace, promoting shared values and generating wealth for all EU citizens by means of its own norms. As the EU and its Member States are a State Party of the WTO, the legal regulations of the WTO are included in EU sources of law and are binding for all EU Member States. Thus, the relationship between the WTO and the EU is closely related. This contribution deals with the theoretical comparison between the EU and the WTO in the context of axiology, basic principles and human rights protection aspects. I am of the opinion that it is not justified to look at these organizations in a completely separate way but to identify their common features. The main aim of the contribution is to confirm the hypothesis whether the process of integrating their legal regulations is possible. To consider this issue the Author has divided this paper into three parts: an introduction, a study of the WTO, a study of the EU and a conclusion. The following research methods have been used: legal comparison, analytical and descriptive.

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Nikol Nevečeřalová

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 115-127

https://doi.org/10.4467/22996834FLR.21.024.14444

This contribution focus on the revenue side of the EU budget, which consists of own resources, divided into traditional resources, income in the form of a share of value-added tax, and gross national income. On 21 July 2020, the European Council agreed on a multiannual financial framework for the period 2021-2027, and in response to the pandemic situation associated with Covid-19, a temporary recovery instrument for the next generation of the EU was agreed. At the same time, from which it was apparent that it is necessary to find new own resources for the EU, and how the European Stability Mechanism (ESM) could be used to the consequences of the corona crisis. The author will focus mainly on issues on the revenue side of the Union budget and the role of the ESM.
Within the ongoing debates when the result was the coronavirus response the question arises of whether it would be appropriate and effective to introduce a common tax for the EU. The main aim of the contribution is to use the descriptive method, the method of analysis and synthesis the revenue side system of the EU budget, and the reform efforts that culminated in the reform of own resources. In the last part of the article, the author using a descriptive method on how the ESM was activated as one of the walls to maintain the stability of the euro area. Including the view of introducing a common European tax as a fiscal instrument to cover the expenditures (debt) incurred related to coronavirus response i.e. recovery instrument Next Generation.

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Maciej Mikliński

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 128-145

https://doi.org/10.4467/22996834FLR.21.025.14445

The current norms governing deposit banking activities are the result of a centuries-old evolution of the construct of bank account, the legal nature of bank account, the subject of deposit, and banking institutions themselves. Different civilizations and cultures have contributed to the shaping of deposit activities. The aim of the article is to present and discuss, from a historical-legal point of view, the origin and unfolding of deposit banking activities over time: from antiquity, through the Middle Ages, the early modern period, to modern times. The deliberations are set against a broader financial and legal backdrop to include the transformation of economic power that accompanies deposit activities, expressed in the form of: commodity money, bullion, paper money, and funds. The picture of evolution is completed by the emerging institutions of supervision, capital requirements or deposit guarantee schemes, constituting a series of normative solutions adopted due to the need to provide a framework for deposit activities that would prioritize the security of the depositor. The study, due to its historical-legal character within the scope of detailed sciences, does not aim at applying the conclusions in legal practice or in the theoretical-legal dimension. It serves to collect and show the already acquired historical-legal knowledge about the foundations of contemporary normative solutions of bank deposit activities. In order to achieve the research goal, the study uses the research method of critical literature review. Thus, a reference was made to scientific historical-legal and historical studies, from the point of view of a selected research problem, which has not been elaborated in a cross-sectional manner so far.

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Ewa Derc

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 145-162

https://doi.org/10.4467/22996834FLR.21.026.14446

This contribution deals with the protection of consumer rights which must be clear and certain. At the same time, it is not possible to protect the important interests of the stability of the financial market and its actors and, at the same time, to protect those who use the services of these actors. After all, the interests of the parties in a contract are not entirely compatible, the client wants to receive the lowest possible price of capital and the borrower the highest possible price. A body that will protect one party will not be independent with regard to the other interest being protected. The idea of all the Financial Ombudsmen created after 2008 is precisely that of protecting one party, the consumer/customer, who, in his or her own way, is the guarantor of the banks' liquidity security. This idea prevails where the consumer of financial services is effectively protected. The Ombudsman is, in a way, a consequence, but also a guarantor of financial stability and the financing system, and not speculation on consumers.

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Richard Bartes

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 163-184

https://doi.org/10.4467/22996834FLR.21.027.14447

This contribution deals with the evolution of public finance in two selected European countries. France and Germany were selected as countries to compare their evolution of public finance. The reason why the two countries were chosen is their general proximity to each other in many respects. From a professional point of view, i.e. from the point of view of the discipline of public finance, however, these are countries with different concepts of public finance disciplines. The contribution presents the historical background, context and consequences of this evolution. The relevant public finance evolution is divided into several historical stages in each country. The contribution focuses on each stage separately and points out solutions and effect of each stage. The main aim of the contribution is to confirm or disprove the hypothesis that the evolution of the public finance discipline was different in each of the selected countries. The scientific methods used in the article are analysis and synthesis, description and comparative methods.

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Marek Bočánek

Financial Law Review, Issue 23 (3)/ 2021, 2021, pp. 185-200

https://doi.org/10.4467/22996834FLR.21.028.14448

This article focuses on the issue of tax evasion and approach of compliance officers in payment institutions thereto. As tax evasion represents a phenomenon that remains attractive globally and certain percentage of economic activities will still remain connected to such illegal acting, it’s necessary that attention will be paid to it.
The primary aim of this article is to identify and define effective methods of compliance officers or departments in relation to their clients or their transactions where certain elements or aspects of tax evasion activities can be detected, in particular based on the obligations vested in national acts, covered by the Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU (hereinafter referred to only as the “AML Directive”).
Hypothesis of this article will test the statement that compliance department applies adequate methodology and properly worded questions may differentiate between clients that are putting their efforts into money laundering, in particular tax evasion, and clients with legal intentions.
First part of this article will describe existing legal framework covering the area of money laundering where the method of analysis, synthesis and descriptive method will be applied. Second part of this article focuses on respective approaches to different tax evasion efforts with the main methods of deduction, synthesis and empirical research. Certain element of comparative analysis will be applied as well.
Weakness of this topic is the insufficiency of expert literature for this area when majority of sources come mainly from the publishing of international organisations and partially from the monographies of different authors covering this area only in a form of a side topic. Based on this fact, this work is mostly based on sources from international organisations as from monographies.

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