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Finance Ministry wants joint collection of taxes and payroll taxes

The Finance Ministry proposes that as of August 2009, Slovakia's tax bureaux will collect both income taxes and compulsory payments to social and insurance funds. Currently, the latter, known as "payroll taxes", are collected by the Sociálna poisťovňa social insurer.

The ministry has submitted the proposal for review by other ministries.

"The basic condition for the unification of tax and payroll tax collection is a high-quality tax administration system," reads the ministry's report.

The ministry says legislation must be changed and the institutions involved prepared before the move can take place.

According to the proposal, the collection of income tax and compulsory transfers by a single institution would benefit citizens, the business community, as well as the state.

Along with reducing administrative costs, the new system would allow arrears to be claimed through a single institution.

Compiled by Beata Balogová from press reports
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