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State Gazette, issue 100 /December 20th, 2019
Increased protection against unfair terms in consumer contracts foresees another change in the Code of Civil Procedure. The Court will of its own motion monitor the existence of unfair terms in a contract concluded with a consumer, providing the parties with an opportunity to express an opinion on these issues. When considering an application for issuance of an enforcement order under Art. 410, where the claim arises from a contract concluded with a consumer, the contract, if in writing, together with all its annexes and amendments, and any applicable general conditions, if any, shall be attached to the application. The application against the consumer is filed with the court in whose area his current address is, or in the absence of his current address, the permanent address. The court shall refuse to issue an enforcement order where the request is based on an unfair clause in a contract concluded with a consumer or there is reasonable grounds for doing so. The time limits for voluntary enforcement and opposition are increased from two weeks to one month, with the court indicating that if the opposition is unfounded, the debtor may incur costs higher than those specified in the order. In the event that the debtor cannot be found, the doorman must collect information that he does not live at the address, after consulting the condominium manager, the mayor of the respective settlement or otherwise, and certify this by indicating the source of this data in the message. For issuing a performance order under Art. 417 banks are required to submit to the statement of accounts and the document from which the bank’s receivable arises, together with all its annexes, including the applicable general conditions. If the claim arises from a security, where it secures a claim arising from a contract concluded with a consumer, the contract shall be annexed to the application, if in writing, together with all its annexes, including the applicable general conditions.
From two weeks to one, the time-limit for appealing the order, which upholds the request for immediate execution, has been increasing. The private appeal shall be lodged with the objection to the order, and the appeal shall not suspend execution. The court shall revoke the order when the preconditions of Art. 418, para. 2, sentence one and para. 3, as well as when the claim is based on an unfair clause in a contract concluded with a consumer. When the debtor is a consumer, the security is up to one-third of the claim. The court ordering the immediate enforcement may also suspend it without the need for a security when a request for suspension has been made, supported by written evidence that: the claim is not due; that it is based on an unfair clause in a consumer contract; that the amount of the receivable under a contract concluded with a consumer is incorrectly calculated. The termination order shall be enforceable immediately, regardless of its appeal. When a claim is instituted, the court competent to rule on the request for suspension of enforcement is the court to which the claim under Art. 422, para. 1. Upon termination of enforcement, the lifting of liens and the cancellation of foreclosures in respect of property sold in the course of enforcement proceedings shall continue to apply. The final provisions extend the definition of unfair terms in a contract to the Consumer Protection Act.

State Gazette, issue 102 /December 31st, 2019
Counter-tax arrangements are introduced with changes to the Code of Tax Procedure which introduce Council Directive 2018/822 of 25 May 2018 amending Directive 2011/16 / EU as regards the mandatory automatic exchange of information in the area of taxation related to cross-border disclosures. In Chapter Sixteen “Special Proceedings”, Section VII “Special Rules for the Automatic Exchange of Information on Cross-Border Tax Schemes” is set up, which governs the procedure for administrative cooperation through the automatic exchange of information on cross-border tax schemes. Automatic exchange of information is the systematic provision of predefined information to the Member States of the European Union, without request, at a specified interval. The Executive Director of the National Revenue Agency exchanges information on cross-border tax schemes with the competent authorities of the Member States. The automatic exchange of information and the provision of information by the persons liable under this section shall apply to the taxes provided for in Art. 143b. The information shall be exchanged within one month from the end of the quarter during which it was provided, using a standard form. The information may be exchanged in any official language of the European Union, in accordance with the language rules adopted by the European Commission. For the purposes of automatic exchange of information, information on cross-border tax schemes with the potential risk of tax avoidance shall be provided. A cross-border tax scheme is a scheme that affects more than one Member State or a Member State and a third country when at least one of the following conditions is fulfilled: not all participants in the scheme are resident for tax purposes in the same jurisdiction; one or more of the participants in the scheme are both tax resident in more than one jurisdiction; one or more of the participants in the scheme carry on business in another jurisdiction through a place of business or a fixed base and the scheme covers part or all of the business of the place of business or the fixed base; one or more scheme participants engage in an activity in another jurisdiction without being resident for tax purposes or forming a business or designated base in that jurisdiction; the scheme may have an effect on the automatic exchange of information or the determination of the beneficial owner.
A cross-border tax scheme may include an arrangement, agreement, arrangement, consent, opinion, scheme, plan, transaction or series of such. The tax scheme may consist of several parts or several stages of implementation. Cross-border tax schemes with a potential risk of tax avoidance are the following categories: a scheme whereby a taxable person or other participant in a taxpayer undertakes to respect a confidentiality condition that may require that it not be disclosed to other consultants or to tax authorities the way in which the scheme can provide a tax advantage; a scheme whereby the consultant is entitled to receive remuneration in any form and this remuneration is determined according to:
А)the amount of tax advantage resulting from the scheme, or b) whether a tax advantage has been obtained as a result of the scheme; this also includes a stipulation that the consultant reimburses part or all of the remuneration when the expected tax advantage resulting from the scheme has not been partially or fully achieved; a scheme which has substantially standardized documentation and / or structure and is accessible to more than one taxable person without having to be substantially modified for implementation purposes; a scheme whereby a participant therein undertakes deliberate action to acquire a company that incurs tax losses, terminate its principal activity and use the losses to reduce its tax liabilities, including by transferring those losses to another jurisdiction or by accelerating use of these losses; a scheme which provides for an outcome equivalent to the re-qualification, conversion or conversion of income into property, capital, donation or other income that is taxed at a lower rate or is exempt from taxation; a scheme that involves successive transactions in which funds are transferred for the purpose of repaying them through the participation of one or more intermediate entities that have no other principal economic function, or the use of transactions that offset or cancel each other or have another similar result; a scheme involving cross-border payments constituting tax deductible expenses between two or more related enterprises where at least one of the following conditions is fulfilled: (a) the recipient is not a tax resident of any tax jurisdiction; (b) the recipient is a resident for tax purposes of a jurisdiction which: (aa) does not impose a corporate tax or imposes a corporate tax at zero or near zero rate, or (bb) is included in a list of third jurisdictions that have been jointly assessed by Member States or within the Organization for Economic Co-operation and Development as non-cooperative jurisdictions; (c) the payment is fully exempt from taxation in the jurisdiction in which the recipient is resident for tax purposes; (d) the payment is subject to a preferential tax regime in the jurisdiction in which the recipient is resident for tax purposes; a scheme which provides for the deduction of depreciation expense for the same asset in more than one jurisdiction; a scheme seeking to avoid double taxation in respect of the same element of income or property in more than one jurisdiction; a scheme which involves the transfer of assets and there is a significant difference in the amounts that are accepted as consideration due for the assets in the jurisdictions concerned; a scheme which may lead to a reduction or circumvention of the obligation to provide information under Chapter Sixteen, Section IIIa, similar provisions in the legislation of other Member States or jurisdictions or agreements for the automatic exchange of financial account information, or where the absence is used of such legislation or agreements, including through: (a) use of an account, product or investment that is not or is not claimed to be a financial account but which has characteristics, in the same way similar to those of a financial account; (b) the transfer of financial accounts or assets to jurisdictions or the use of jurisdictions that are not obliged to exchange financial account information automatically with the state of the taxable person’s domicile; (c) the re-qualification of income or capital in products or payments not subject to the automatic exchange of financial account information; (d) the transfer or conversion of a financial institution or financial account, or of assets contained therein, into a financial institution or into a financial account, or assets for which information is not provided by the automatic exchange of financial account information; (e) the use of legal entities, arrangements or structures that circumvent or are deemed to circumvent the provision of information to one or more of the account holders or controllers by the automatic exchange of financial account information;
(f) circumventing or exploiting weaknesses in the complex vetting procedures applied by financial institutions to comply with their obligations to provide financial account information, including the use of jurisdictions with inappropriate or ineffective enforcement regimes in the field of anti-money laundering measures of money or with insufficient transparency requirements for legal entities or legal arrangements; a scheme involving a chain of non-transparent legal or real property with the use of persons, legal arrangements or structures: (a) not carrying out substantial business activities carried out with the necessary staff, equipment, assets and premises, and (b) established, managed, controlled, established or resident for tax purposes in a jurisdiction other than the jurisdiction in which the tax resident is one or more of the beneficial owners of assets owned by such legal persons (c) whose beneficial owners are not identifiable under the meaning of the Anti-Money Laundering Act or a similar provision of a Member State’s legislation; a scheme that involves the use of unilateral rules for relaxed regimes for transfer pricing purposes; a scheme that involves the transfer or provision of intangible valuables for transfer pricing purposes; a scheme involving an intra-group cross-border transfer of functions and / or risks and / or assets if the estimated annual profit before interest and taxes of the transferor or transferors in the three years after the transfer equals less than 50 percent of the estimated annual profit before interest and taxes on the same transferor or transferors, if the transfer was not made. Although a cross-border tax scheme falls into one of the categories listed, information is only provided where it can be established that the principal benefit or one of the principal benefits which the taxable person can reasonably expect to derive from the cross-border in the light of all relevant facts and circumstances tax scheme is the receipt of a tax advantage. The existence of any of the conditions cannot in itself be a basis for concluding that the main benefit or one of the main benefits is to obtain a tax advantage.
Information on cross-border tax schemes shall be provided to the Executive Director of the National Revenue Agency by a cross-border tax advisor when the consultant is a resident for tax purposes of the Republic of Bulgaria; or has a place of business or a fixed base in the Republic of Bulgaria through which the services related to the scheme are provided; or is established or regulated in accordance with the legislation of the Republic of Bulgaria; or is registered as a member of a professional or professional organization related to legal, tax or other consulting services in the Republic of Bulgaria. A consultant is any person who prepares, markets, organizes or manages the implementation or makes available a cross-border tax scheme. A consultant is also any person who, in the light of the relevant facts and circumstances and on the basis of the information and expertise available to provide such services, knows or can reasonably be assumed to know that he / she has undertaken to provide directly or through other persons assistance, assistance or consultation in relation to the preparation, marketing, organization, management or provision for implementation of a cross-border tax scheme under Art. 143nd. The person may present evidence that he did not know and could reasonably be presumed not to have known that he had participated in the taxable cross-border tax scheme, relying on all relevant facts and circumstances, the information available and his expertise. and experience. Where an advisor is required to provide information on the same tax scheme in two or more Member States, the information shall be provided only to the competent authority of one Member State, which shall be determined in the following order: the Member State in which the consultant is domiciled taxpayer; the Member State in which the consultant has his or her place of business or a fixed base through which services are provided in connection with the scheme; the Member State in which the consultant is established or whose law governs it; 4. the Member State in which the consultant is registered as a member of a professional or professional body related to legal, tax or other advisory services.
The consultant shall provide information on a cross-border tax scheme that he is aware of, possesses or is under his control, within 30 calendar days of the earliest of the following dates: the day following the day on which the tax scheme is submitted for implementation ; the day following the day on which the tax scheme is ready to the extent that it permits its implementation; the date on which the first step in implementing the tax scheme was completed. In addition, the consultant shall provide information on a cross-border tax scheme within 30 calendar days from the day following the day on which he provided directly, or through other persons, assistance, assistance or consultation with regard to the preparation, marketing, organization, management or making available for application of the tax scheme. After the initial provision of information under para. 6, a taxpayer with a typed content scheme provides every three months with up-to-date information on the scheme, which became known to him after the previous submission of information. Where there is more than one consultant under a cross-border tax scheme, the obligation to provide information is for all consultants, although the obligation may arise in different Member States. A consultant shall be released from the obligation to provide information on a cross-border tax scheme when: there is evidence that another consultant has provided the same information about the tax scheme; has evidence that he has provided the information in another Member State; is required by law to keep this information confidential, unless the taxable person has consented to the disclosure. Although another consultant has provided information on a cross-border tax scheme to the executive director of the National Revenue Agency or a competent authority of another Member State, the consultant shall not be released from his obligation to provide information where the scheme consists of separate parts or stages and each consultant develops, markets, organizes, manages, implements, or provides assistance, assistance or advice in relation to these activities for the individual part or stage of the scheme and.
Information on a cross-border tax scheme is provided by the taxable person: when there is no consultant under the scheme, including when the scheme is created by an employee of the taxable person; when the scheme consultant is released from the obligation to provide information, which is notified to the taxable person; where the scheme consultant: (a) is not a resident for tax purposes of a Member State; (b) there is no place of business or a fixed base in a Member State through which the services in connection with the cross-border tax scheme are provided; (c) is not established or regulated under the law of a Member State; (d) is not registered as a member of a professional or professional body related to legal, tax or other advisory services in a Member State.
A taxable person for the purposes of this section is any person: to whom a cross-border tax scheme has been granted; or who is prepared to implement a cross-border tax scheme; or who has completed the first step in implementing a cross-border tax scheme. The order, timing and competition between national authorities in the provision of information by taxable persons are similarly regulated. The respective administrative-penal provisions for non-fulfillment of the above obligations are also provided.

Compliance with European rules is aimed at recent changes in the Law on the operation of collective investment schemes and other collective investment undertakings.
The net asset value of each sub-fund in the collective investment scheme shall meet the requirements for the net asset value of the mutual fund in accordance with Art. 9, para. 1. A collective investment scheme or its sub-fund may have separate classes of units with a common investment policy and specific characteristics, which should not adversely affect the other classes of units of the same fund or sub-fund. A collective investment scheme may include in its name the designation “money market fund”, “MMF” or any other designation in Bulgarian or in a foreign language, which implies that it is a money market fund only if it complies with the requirements of Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds. The investment firm shall provide and implement adequate and effective internal channels and procedures for reporting to its employees any actual or potential violations of this Act and its implementing acts. An application for a license to operate as an investment company, which will be a money market fund, respectively a permit for the organization and management of a mutual fund, which will be a money market fund, shall be submitted to the Commission in accordance with the requirements of Regulation (EU) 2017/1131, including the documents attached to the application. Where a license to operate as an investment company, respectively an authorization for the organization and management of a contractual fund is issued, the investment company or the management company of the mutual fund, respectively, may submit an application to the Commission in accordance with the requirements of Regulation (EU) 2017/1131 of a license to operate as a money market fund, respectively an authorization to organize and manage a contractual fund as a money market fund.
The Financial Supervision Commission shall decide on the application and may withdraw the license issued to operate as a money market fund, respectively the authorization to organize and manage a money market fund, in accordance with the requirements of the law and the requirements of the regulation. The common benchmarks for the scenarios used in stress tests of a money market fund conducted in accordance with Art. 28 of Regulation (EU) 2017/1131, are determined by the guidelines of the European Securities and Markets Authority (ESMA) under Art. 28 (7) of Regulation (EU) 2017/1131, for which the Commission has decided to implement them pursuant to Art. 13, para. 1, item 26 of the Law on the Financial Supervision Commission, as additional requirements may be provided in an ordinance.
Notwithstanding the restrictions, a collective investment scheme may not combine investments in transferable securities or money market instruments issued by one person, deposits with that person, as well as exposure to the same person arising from transactions in OTC derivatives, when, as a result of this combination, the total value of these investments will exceed 20 percent of the assets. A collective investment scheme may invest up to 25 per cent of its assets in bonds issued by a credit institution domiciled in a Member State which is subject to supervision to protect bondholders, including the requirement that the funds raised by the bond issue be invested in assets which, throughout the issue, cover the claims relating to the bonds and which, in the event of the insolvency of the issuer, be used as a priority to pay off the obligations to the holders It is bonds. The total value of the investments referred to in the first sentence, which exceeds the exposure limit for one issuer, may not exceed 80 percent of the assets of the collective investment scheme. The Commission shall notify the European Commission of the categories of bonds and issuers which, under Bulgarian law, satisfy the requirements of sentence one. Investment restrictions cannot be combined when, as a result of this combination, the total investment value of a collective investment scheme in transferable securities or money market instruments issued by one person, deposits with that person, and exposure to the same person arising as a result of derivative transactions, will exceed 35 percent of assets.
For a management company that manages a money market fund, the requirements of Regulation (EU) 2017/1131 apply. A management company may manage an alternative investment fund without a license under Art. 201, provided that the portfolio of the managed alternative investment fund includes only financial instruments. A management company may manage a portfolio of an alternative investment fund by delegation only if it holds a license for ancillary services, the management being only for a portfolio involving financial instruments. In case of violation of the requirements for equity under Art. 90, para. 2, respectively under Art. 90, para. 6, the management company is obliged to notify the commission within 7 days from the occurrence of the circumstance, specifying the reasons that led to the decline of the equity capital. In such cases, the Committee, upon proposal by the Vice-Chairman, may, after weighing the reasons that led to the decline of the equity, and taking into account the interests of the investors, set a time limit for the company to restore the value of its equity to the amount under Art. 90, para. 2, respectively under Art. 90, para. 6, or expressly waive the license issued.
In case of breach of any of the liquidity requirements set out in an ordinance, the management company is obliged to notify the vice-chairman within 7 days after the breach has been committed, indicating the reasons for the breach and proposing specific measures for its elimination. The violation should be remedied within one month of its commission. The Vice-President may, within 7 days of the notification of the sentence, first determine other remedial measures. Except in cases of official revocation of a license, a management company that renounces its license and has provided the services under Art. 86, para. 2, items 2 - 4, to the notification of the decision for refusal of license, presents a plan for settling its relations with clients. The Commission shall withdraw the license of the company after the submission of documents proving the settlement of these relations.