BUSINESS IN SHORT

Revenue service chases tax-dodging landlords

EVADING tax on rental income from property in Slovakia has recently got riskier. In late 2007 tax offices started checking renters with the help of data from real estate offices, the Sme daily wrote. Checks carried out so far showed that of 746 renters, 40 percent had not registered their rental businesses. They have been handed a Sk2,000 fine and obliged to register with the tax office.

EVADING tax on rental income from property in Slovakia has recently got riskier. In late 2007 tax offices started checking renters with the help of data from real estate offices, the Sme daily wrote. Checks carried out so far showed that of 746 renters, 40 percent had not registered their rental businesses. They have been handed a Sk2,000 fine and obliged to register with the tax office.

The tax offices data comes from real estate agents' contracts. Iveta Adamíková, the Tax Directorate spokesperson, admits that checks might go even deeper. The offices will not only examine this year's tax returns from fined landlords, but can also ask them to show tax returns from previous years or carry out a tax audit.

People renting real estate are obliged to register their rental business as of September 2006. This rule was introduced to detect those who let property but do not declare the income or pay tax on it. However, checks carried out with the assistance of real estate agencies will reveal only those landlords who let their properties via agencies.

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