This follows a law decree that was approved by the government at the end of April.
The law was created following the issuing of an EU directive seeking to facilitate the exchange of banking information among member states in a bid to combat tax fraud.
The information obtained from accounts held by residents in Portugal is expected to be used to investigate suspicions of tax evasion, while the details of non-residents will be passed on to their respective countries of origin.
According to reports in the media, all banking information of individual clients will be passed on to the taxman, irrespective of their bank balances.
As for companies, those who have active accounts prior to December 2015 will only see their financial details revealed to the taxman should they boast bank balances in excess of 250,000 US dollars.
Currently, the only information banks are compelled to disclose are interest or dividend payments received by their clients.
With Portugal set to provide details of non-residents to their home countries, the same will apply in return, with the taxman here set to be given information by foreign banks of Portuguese nationals’ bank balances abroad.
The legislation voted through in April, comes after the National Data Protection Commission (CNPD) ruled against a similar decree in February. It would appear that with this new law, the government believes it has made the necessary amendments to push through the legislation.
But the Commission is now arguing that this law change still contravenes the rights of citizens and also cites a ruling by the European Justice Tribunal in 2014 which found that indiscriminate access to people’s bank accounts was “unnecessary and excessive.”
The Finance Ministry has so far not commented on the decision made public in last Wednesday’s edition of Jornal de Notícias.
Bank secrecy was relaxed back in 2009 under the previous Socialist cabinet, when the government brought in new legislation that saw the onus of proof being inverted.
This means that the taxpayer now needs to provide evidence of compliance with tax laws whenever a cloud of suspicion arises over financial history or when apparent signs of wealth emerge which are deemed incompatible with declared earnings.
Previously, roles were reversed, with the taxman first needing to justify suspicions of fraud or a fiscal crime.
The mere failure to hand in a tax declaration hasm since 2009, empowered the taxman to delve into the financial history of a targeted taxpayer.
Also the transfer of cash from Portuguese banks to offshore accounts now triggers an automatic alert.