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Control over cash transactions to tighten in autumn

2013-07

At a press conference, the Tax Administration of the Republic of Slovenia announced an increase in tax audits related to cash transactions from 1 July onwards. Such audits will be especially intensive in the autumn.

On 1 July the Regulation of the manner of fulfilling the requirements regarding specific computer programmes and electronic devices, and the management and operation of information systems and the content, form, manner, and deadlines for the submission of data came into force. The Regulation determines in detail when computer programmes and electronic devices used for billing in cash transactions and storing data fulfil the Tax Procedure Act requirements. The Regulation also determines the content, form, manner, and deadlines for the submission of digital data records to the Tax Administration, as well as the processing thereof.

Upon the request of the Tax Administration, the taxpayer must submit the transcripts of data in three working days. In certain cases the deadline may, upon written request, be extended for a maximum of five working days. We note that a record is only considered adequate if it ensures at least all the substantive data prescribed by the Regulation. The taxpayer may submit such data in hardcopy, i.e. in the form of a transcript from a control register. The penalties provided for use of a programme which enables the deletion of invoices without a trace after 1 July range from €3,000 to €10,000 for individuals that carry out a business activity, from €20,000 to €70,000 for sole proprietors, and from €50,000 to €250,000 for legal entities.

The Tax Administration established that a grey economy to the largest extent exists among small businesses receiving cash payments from final customers (i.e. in construction, the legal profession, dentistry, car repair and resale, hairdressing, catering, electronic device repairs, private lessons, childcare, unregistered vehicles, renting flats, home care, the bakery industry, logging and wood selling, the music industry, public event organisation, etc.), therefore tightened control is expected in these sectors.

Authors

Picture of Sasa Sodja
Saša Sodja
Attorney-at-Law
Ljubljana