NEWS | SDC

July 26, 2015

Croatia: Tax Police launched the summer operation

The start of the summer season for taxpayers in Croatia always means business with highest turnover and a lot of work. Some of them are also trying real hard to avoid paying taxes and this calls for higher engagement of the tax inspectors who are moving around Adriatic coast every summer, especially in the time of big concerts and festivals.
At the beginning of this year’s session, Tax Police published information of the inspections conducted in the period between June 15-30. Inspectors visited 625 taxpayers, and in 24% of the examined cases found irregularities on the basis of the current Fiscal Law. Some 7% of examined taxpayers were sanctioned by temporary cessation of their business activities due to the failure to issue fiscal receipts and failure to make payments of declared tax in the prescribed time.

July 20, 2015

Greece: A pledge to crack down on tax evasion

ATHENS: Tax Inspectors are making frequent and surprise visits, mainly to restaurants, in order to assure new tax rate 23% (up from 13%) is being collected and reported correctly by taxpayers.

Fiscal receipts were in use since 1988 when Greece has enacted fiscal law (hard regulation) for the first time, mandating the use of fiscal devices (Government Gazette 222Α/05.10.1988). Since this introduction there has been several updates of device technical specifications over the years, covering variety of models to suite all business needs, including mobile devices to cover transportation. In time, fraudsters have discovered easy ways to keep separate set of books and again continue to dodge tax.

July 9, 2015

New York, USA: Bill against zappers and phantom-ware

TITLE:

An act to amend the tax law, in relation to prohibiting the use of automated sales suppression devices, zappers or phantom-ware

PURPOSE:

To make it illegal for a person to knowingly purchase, possess, install, update, maintain, upgrade, transfer or use any automated sales suppression device, zapper or phantom-ware.

July 9, 2015

New York, USA: Tax evasion still leads the race

Manhattan District Attorney Cyrus R. Vance, Jr., announced that a New York State Supreme Court Grand Jury has issued a report outlining a series of recommendations to prevent fraud related to sales suppression software programs. These programs – which include “Phantom-ware” and “Zappers” – can be used by businesses to automatically falsify financial records by giving the appearance of fewer and smaller transactions and, as a result, less taxable revenue.

New York State was the first to release anti-zapper bill (sponsored by Senator Liz Krueger). Same draft was used in 30+ States, out of which 20 have made it a law, but New York State is stalling.

Sen. Krueger believes it’s the kind of policy that should generate bipartisan support since it merely helps the state enforce existing tax laws. “I sort of think this bill is a no-brainer,” Krueger said in 2011 interview.

What has happened in the past 5 years leading to this Grand Jury verdict?

July 9, 2015

TURKEY: upgrading 2 million fiscal cash registers

2 million fiscal cash registers in Turkey will be replaced this year with a new generation of devices approved by the Turkish Revenue Administration.

Within the new framework of the fight plan against underground economy the traditional security on fiscal cash registers is upgraded to a so-called new generation devices.

The transition started in 2013 when nearly 120.000 merchants choose benefits over the mandatory compliance requirements to issue fiscal receipts. Benefits such as remote device service diagnostic, PLU management, processing credit card transactions, etc all within a single device on a merchant’s counter. Many traders however are comfortable with older devices and will wait to adopt higher security devices until the final deadline call for upgrade.