Undeclared income fines are slashed


TAGS: Taxation

The Finance Ministry is introducing a fixed discount of 40 percent on fines for previously undeclared revenues, as the voluntary disclosure of income scheme continues.

The multi-bill tabled in Parliament this week shows that the ministry is calling on taxpayers to submit disclosures of undeclared revenues, offering them a 40 percent discount on the fines and interest (regardless of the amount due) stemming from the declarations if the dues are paid within 30 days.

The aim is to increase the fine collection rate regarding both older cases that have not run their statute of limitations and new ones.

For instance, if a taxpayer who has not submitted an income tax declaration is caught hiding revenues that would entail taxes of 10,000 euros, his fine would come to 5,000 euros and the interest to 3,000 euros. That would take the sum due to 18,000 euros. However, if he pays off his debts within a month, the 8,000-euro fine plus interest would be slashed to 4,800 euros, taking the total amount due to 14,800 euros.