State wants companies to publish their excessive VAT refunds

Several measures proposed as part of the amendments to the tax laws aim to fight tax evasion.

Finance Minister Peter KažimírFinance Minister Peter Kažimír (Source: SITA)

The Finance Ministry has prepared a package of amendments to the tax laws. It proposes several changes particularly to the law on tax administration, planning to redefine tax secrecy and introduce an index of tax reliability as well as other measures to fight tax evasion, the SITA newswire reported.

One of the aims of the tax secrecy reform is to increase tax transparency while maintaining rights and a minimal standard of tax payers’ protection. The Financial Administration already publishes a list of tax subjects registered for VAT, VAT payers and a list of tax debtors on its website. The lists contribute to the better awareness of people which may then result in better transparency of the business environment and help fight tax evasion, SITA wrote.

The number of published lists may be increased by introducing the list that will specify the VAT refunds claimed by the tax subjects.

“By publishing this information, the scope for fraud may be narrowed as the same principle as that used for publishing contracts will be applied,” the Finance Ministry said, as quoted by SITA, adding that the lists should have a psychological effect on potential fraudsters.

They should also be used as a tool for public control carried out by, for example, the third sector.

The ministry also plans to introduce an index of tax reliability whose aim is to create an unbiased, independent and legal evaluation of tax subjects.

“In other words, the Financial Administration will ‘mark’ companies based on how they oblige their tax duties,” the ministry explained, as quoted by SITA, adding that the measure will have both motivational and preventive character.

The amendment to the law on income tax, which will also be part of the package, focuses on innovations. It proposes to increase the number of benefits provided to tax payers active in research and development. Another novelty is the introduction of the so-called patent box that will enable a partial release from income tax from using non-tangible assets, SITA reported.

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