NIK investigation into VAT fraud leads to greater control over refunds

Deputy Finance Minister Irena Ozog today announced greater controls over taxpayers and companies receiving VAT refunds, including annual refunds below zl. 1 million. This is in response to reports from the Supreme Board of Inspection (NIK), which criticized tax offices for not supervising the companies in question. Co-operating with NIK, tax inspectors investigated 85 VAT-paying companies. In 13 of them they spotted frauds - VAT write-offs based on fictitious invoices or invoices issued by non-existent companies. In 17 offices, NIK inspectors found 310 cases of refunding VAT to millionaires without checking whether the refund was justified. NIK also indicated that entrepreneurs have serious difficulties in properly understanding the point at which tax obligations begin. However, the Finance Ministry rejected a NIK petition to simplify regulations. (Rzeczpospolita, p. B2) M.T.