BRATISLAVA, February 24, (WEBNOVINY) – Experts have greeted a series of measures prepared by the Finance Ministry with the aim to limit room for tax evasion. Nevertheless they point to potential negative consequences of some precautions on the business sphere. The ministry has elaborated blueprints of three concepts within which measures against frauds with excise tax, VAT and income tax and payroll levies should be adopted by the year’s end.
As one of the measures to curb VAT frauds, the department suggests to extend the content of application forms for VAT registration by information that might indicate the risk rate on the side of the applicant; for instance. Also, a register of persons should be prepared who were informed by the tax administration that they have been identified as individuals participating in suspicious commercial activities. Moreover, VAT security deposit might be introduced for entities with which the recovery and payment of tax might be unsuccessful.
The material on VAT introduces some legislative and other measures that serve as a solid starting point for changes in VAT controls to reduce tax frauds, and many of them will help detect scams. But the measures are not much concrete and the proposed modifications may afflict the business sector, Valeria Kadasova, a tax manager with PricewaterhouseCoopers (PwC) Slovensko remarked to the concept.
This concept also suggests introduction of obligatory non-cash payments into business relations with payments exceeding 3,000 euros. This is expected to avert fictitious invoices or cash register receipts. KPMG Slovensko manager Zuzana Blazekova praises this proposal for creating better conditions to control real realization of business transactions but the set limit may encourage business to circumvent it. As an example she mentioned issuance of several partial invoices for sums below the set limit.
The Finance Ministry also is to focus on excise taxes in response to the present situation. To eliminate unlawful behavior of businesses, the ministry has come up with the idea to change package labeling of cigarettes and spirits, such as to adjust the conditions for printing and issuance of stamps and to improve their security elements.
SITA
