Madeira: Double Tax Treaties
Other International Treaties
Mutual Assistance Treaties: Portugal has entered a number of mutual assistance treaties as such; in addition, Double Tax Treaties usually provide for co-operation with foreign investigators, and some contain exchange of information clauses. There are also EU Directives which apply.
By and large these agreements and the directives cover drug and weapons trafficking, as well as money laundering, which is also covered in Portugal's Banking Secrecy Law.
Fiscal crime is not covered by Portugal's international agreements, nor by the Banking Secrecy Act. The authorities do not normally co-operate with foreign investigations into tax evasion.
The Tax Reform Act 2000. No doubt with an eye to the general tightening-up of global standards of protection against money-laundering, the Tax Reform Act has changed the rules so that the Portuguese tax authorities are no longer required to obtain a Court Order requesting taxpayer's information from banking, credit and finance institutions.
There is still a right of appeal for the taxpayer in most circumstances, and this is sometimes suspensive. There are a number of other safeguards, including compulsory notification to the tax-payer of any investigative process and a requirement to disclose evidence to the taxpayer. The legislation also contains a much wider definition of reportable transactions than previously.