NEWS | SDC

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.

July 9, 2015

Mississippi: Tax evasion, business as usual

The owner of Fannin Mart Restaurant pleaded guilty to two of eight counts of tax evasion in Rankin County Circuit Court.

A judge on Monday sentenced Steve Page, the owner of the popular restaurant on Mississippi 25 in Flowood, to five years in prison with two years suspended, and three years house arrest.

Page was indicted in October of last year on eight counts of felony tax evasion and eight counts of fraudulent statements and representations.

Page reported to have sold only $10,800 in the average month during that period, when in reality the restaurant actually sold an average of $35,720 per month.

Information from: The Clarion-Ledger

April 20, 2015

Better than lottery – It’s cash money for fiscal receipts

Newly formed and partially recognised state of Kosovo, starting April 1st 2015 (no joke) has announced a monetary prizes to all citizens who bring their fiscal receipts to Tax Authority. This measure is also mandated by the law as an incentive and motivation for taking fiscal receipts. Rather than using lottery to draw winners, this young institution has decided to award everybody who is being compliant.

The formula states as follows:

March 29, 2015

Telecom operators offer government compliant fiscal solutions

Every month we can find one new jurisdiction who is challenged to combat shadow economy with the use of innovative tech tools. Some will say nothing new here, it’s been happening for over 30 years, and that is true. However in the past this technology was too robust and too complex to install without strong enforcement imposed on taxpayers who are required to meet compliance and obtain certified devices in accordance with whatever procedure has been set, usually involving few licensed suppliers. Modernization brought changes and made certified compliance mechanisms user friendly in a spirit of telecom operators who already have great market coverage.

Offerings are now becoming more appealing to a business model suitable for operator’s relationship with merchants. Here are few examples: