NEWS | SDC

December 14, 2015

SARS: tax evasion through fraudulent VAT refund claims

An audit into 40 private companies throughout South Africa has revealed more than R80 million worth of tax fraud‚ the SA Revenue Service said on Thursday.

SARS Commissioner Tom Moyane on Thursday revealed a new strategy to combat non-compliance companies in “high-risk sectors”.

Moyane said that the “cash and carry industry” was identified as one of the high risk sectors SARS aimed to focus on.

“Over the last six months SARS’ risk processes have selected more than 40 companies operating in this space for audit. To date‚ full audits have been conducted on a number of these companies‚ and non-compliance to the value of R80 million discovered. They owe taxes ranging from R500 000 to R20 million‚” he said.

Moyane said that the money included withholding of VAT payments from cash sales‚ illegal repatriation of funds to global tax havens and fraudulent vat refund claims.

December 11, 2015

FRANCE: Certified POS in 2018

Merchants in France will use an anti-fraud retail system soon.

Pharmacies, restaurants, bakeries, florists, hairdressers, supermarkets … These professions are under the tax administration radar because they are part of the majority group that cheat on VAT. The reason is simple: their customers can pay in cash for their product/service. To fight against this tax authority in France will use new instrument. As of 1 January 2018, the VAT payers must use only secure and certified POS software and cash registers. This measure was adopted last month in the National Assembly within the framework of the first reading of the Finance law for the year 2016.

December 3, 2015

SLOVENIA: Test launch certified cash registers

Cash-based businesses got the first taste of certified cash registers as a one-month trial began on Tuesday (December 2nd) ahead of the mandatory nation-wide rollout as of 2016.

The Financial Administration said 166 users issued 3,000 receipts with the new system by the afternoon, a fraction of the millions that will be issued on a daily basis once the system is in place.

The new system, an attempt to thwart tax evasion, connects cash registers directly with the revenue service’s central IT system, where the receipts are confirmed before they are printed out.

November 25, 2015

GERMANY: a bill to end manipulation with cash registers

Finance Minister Walter-Borjans at a presentation for tamper-proof POS systems. Photo: Land NRW / W. Meyer-Piehl

November 19th, 2015: The German federal government has initiated a discussion panel for a bill which announces the end of tax evasion related to manipulation with cash registers (a.k.a. zappers and phantom-ware). “The federal government was not stimulated enough to hunt for manipulators, but now slowly it is getting there,” said NRW Finance Minister Norbert Walter-Borjans. Auditors can make unannounced visits to companies and look for hidden software which are reducing true turnover. If found, responsible person and the company will face heavy fines.

November 21, 2015

AUSTRIA: 2016 regulation to stop sales suppression

Innsbruck / Salzburg / Linz – As Tiroler Tageszeitung reports, due to allegedly manipulated cash registers tax inspectors and financial police have carried out raids at six catering businesses in Tirol, Salzburg and Upper Austria. The sales suppression software found at the premises reduces revenues of up to 25%, means that quarter of annual revenues remain unreported. Each year this tax evasion is costing Austrian citizens 1 billion euros.

The Ministry of Finance informed press, with reference to the ongoing investigation, that damage to the Treasury made by manipulation of the cash registers is quite significant. The cases will soon be handed over to the prosecutor’s office.