NEWS

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.

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.