According to the new Hungarian tax procedural act entered into force on 1 January 2018, business associations are obliged to report data about their foreign bank accounts to the tax authority. The law requires that business associations having a foreign bank account number must report until 31 January 2018 such foreign bank account number and the name of the foreign bank on a special form applicable for this purpose.
In case the business association closes its foreign bank account, or if it opens a new one, besides the name of the bank and the bank account number, the date of closure or opening must be reported in 15 days.
The tax authority has no direct information whether a business association disposes of a foreign bank account, nevertheless, during a tax supervision at the business association concerned or at its business partners, the tax authority may become aware thereof. Furthermore, the automatic exchange of bank account-related information in the European Union also helps the tax authority to become informed about the foreign bank account.
If the business association fails to meet the data-reporting obligations upon request of the tax authority within 15 days, the business association has to pay a fine amounting to HUF 100,000. If the business association meets its obligation within this deadline, the fine may be reduced or withdrawn by the tax authority. In case it fails to report the data despite further written request of the tax authority within further 15 days, the amount of the fine to be paid is HUF 500,000, and this amount cannot be reduced even in case of the fulfilment of this obligation.