Those trying to avoid taxes in Slovenia might soon be facing a 70% tax on the assets they failed to report to the Tax Administration (DURS) if the National Assembly passes the changes to the tax procedure act, which are in mandatory public debate until Friday.
According to the Finance Ministry, DURS had recently found many cases that saw a massive gap between the reported assets of a taxpayer and their spending.
Tax inspectors performed more than 500 investigations into suspicious assets since 2008, finding more than EUR 32m of unpaid tax in 200 cases.
In 2009 and 2010 together the figure amounted to EUR 6.3m, but between January 2011 and June 2013, the figure increased to as much as EUR 26.2m, the daily Dnevnik reported recently.
Under existing legislation DURS may call on any taxpayer to submit data regarding their assets - a call to which the taxpayer must respond. The new changes would however introduce the possibility to have the taxpayer's assets upraised.
The changes also introduce the possibility to have taxable assets determined through other data available to DURS regarding the taxpayer's spending or income.
The base for this new 70% would be the difference between the determined assets or spending and the assets reported to DURS.
The 70% tax rate is foreseen because an appraisal cannot determine with certainty relevant data such as the kind of income, date on which it was received and the amount of unreported assets.
The Finance Ministry believes such overhaul is necessary also because tax evaders are not forced to pay more taxes than those who pay their taxes regularly and in line with the law.
The planned changes to the tax procedure act are to introduce several other novelties. To be able to collect tax from tax evaders, who might transfer the assets onto other people, the changes introduce a provision that broadens the circle of people who warrant for the payment.
Currently, tax may only be collected from close family members, but under the changes this would be extended onto any person who received assets from the evader for free or at a price lower than market value.
The changes also increase fines for tax evaders. The lowest fine would go up from EUR 200 to EUR 250, while the highest fines would go up to EUR 15,000, whereas now they are between EUR 400 and EUR 1,200.
Source: Slovenia Times
