NEWS | SDC

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.

November 20, 2015

SLOVENIA: certified cash registers

A “certified cash register” system will apply as from 2 January 2016, under which all legal persons and individuals that carry out cash (or cash-equivalent) transactions and are required to keep books and records will have to use certified tax registers (unless specifically exempted by statute).

November 15, 2015

Ontario: Preventing Sales Suppression

Ministry of Finance has gathered evidence proving that some businesses use sophisticated technology (zappers and phantom-ware) to electronically suppress sales. That creates an unfair advantage by allowing them to underreport business income and retain the taxes paid by consumers.

According to the report released by the Statistics Canada in 2015, the underground economy in Canada is at 2.3 per cent ($42.4 billion) of GDP for 2012, which, based on Ontario’s GDP share, is estimated to be approximately $15.3 billion.

November 10, 2015

FIJI: FRCA invests $5mil in online tax monitoring system

Fiji loses over $150m annually due to fraudulent practices by some businesses in the country.

Some supermarkets were into “creative accounting” by having additional cash registers and allegedly falsifying sales data, which were not in the company’s books of records.

Fiji Revenue and Customs Authority (FRCA) has stated it will treat any falsified VAT return with all seriousness and offenders will have to face the full brunt of the law including imprisonment.