Polish government to curb tax fraud

The Polish Ministry of Finance has issued new recommendations for local tax offices in an effort to curb tax evasion, they include ensuring appropriate tax inflows, facilitating company registration and improved cooperation with entrepreneurs, the Polish media reported, May end.

“The Ministry of Finance has laid out the following aims: ensuring tax inflows in accordance with budget levels, facilitating company registration, improved cooperation with entrepreneurs, removing administration barriers and the provision of a proficient tax administration service,” Polish Daily Dziennik Gazeta Prawna reported, May 27.

The  Polish Treasury is targeting several types of enterprise where tax fraud is allegedly most common. Ready-made companies are high on the priority list.

A form of tax fraud highlighted by the authorities centres on the submittal of tax declarations on a quarterly basis, despite having opted for the monthly option when registering the company. This cons fiscal offices into believing that the company does not generate taxable revenues. Such a company is sold-on by the fraudsters and its new owners then face the repercussions of the inevitable tax audit.

Companies operating through virtual offices will also be closely monitored. Their lack of physical address, on-site employees and e-mail, frequently render them difficult to monitor and correspond with.

Companies registered for less than 24 months, those that provide intangible or building services, and self-employed individuals who do not file tax declarations regularly, are also likely to be targeted.

“The Ministry of Finance has listed fake invoices, carousel fraud and trading in fuel, scrap metals and mobile phones as tax evasion threats,” Dziennik Gazeta Prawna added.

Guidelines on how and where to implement intensified tax controls were sent to the heads of local tax chambers and offices. Entrepreneurs should expect investigations particularly if they collect large tax refunds.

The government further expects tax office employees to improve collection and recovery by assigning tax liabilities on time.