AADE as “Big Brother”: How it will “see” deposits, safe deposit boxes, investments and electronic wallets

The Independent Authority for National Revenue (AADE) is playing the role of “Big Brother” as the new system it is preparing will gain access to bank accounts of individuals and legal entities and will “scan” all their transactions.

This is the Bank Account Nexus Crosscheck APPlication (BANCAPP)which automates the process of providing data and information on controlled individuals and legal entities. BANCAPP collects and uses data from the file of financial products and analytical financial transactions, transactions on bank accounts, payment accounts and other financial products, and analytical financial transactions of taxpayers with VAT numbers for which a control order was issued.

The check covers deposits, repo agreements, insurance products, derivatives, shares, as well as loans and safe deposit boxes. With the new system, AADE will receive relevant answers on bank accounts and assets for the past five years within 48 hours. This data will be checked against tax returns to determinewhether the amount of personal property and living expenses justifies the income they show to the tax authorities.

If they do not justify it, it will be considered an unjustified increase in wealth, and the excess amount will be taxed at a rate of 33%. The information that banking and financial institutions must provide will relate to:

1. Demand deposits and time deposits
2. Grants (donations).
3. Investment accounts with all types of investment product and securities portfolios such as mutual funds, bonds, stocks, bank premiums, derivatives, repos, etc.
4. Credit cards.
5. ATMs.
6. Accounts payable.
7. Prepaid cards.
8. Electronic wallets.

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