Action plan of fight against tax evasion

The Action plan contains 21 new actions, which are aimed to eliminate new forms of tax frauds. Each action of the Action plan has a set time frame while the first ones to be implemented cover unfair practices during the mergers of legal entities, introduction of on-line connection between revenues evidence of cash register and the Financial Directorate and strengthening the responsibility of partners of legal entities without statutory body.

The Action plan also proposes introduction of an option to return a part of the VAT excessive deduction before performance of a tax audit in the amount which is without any doubts based on data stated in the VAT ledger statements. The respective Amendment of the VAT Act has already been introduced by the Ministry of Finance.

The Amendment of the Tax Code should, as of 1 January 2018, extend the possibilities of the Financial Directorate and introduce indexation of taxpayers on subjects that follow a tax discipline and subjects that do not fulfill legislative obligations. In addition, the period during which it is possible to levy tax based on request of law enforcement authorities should be prolonged from 5 to 10 years. The archiving period of the accounting records should be prolonged to 10 years.

Action plan includes also introduction of summary protocol from several tax audits that are performed simultaneously at several taxpayers which should provide a complex result valid for the respective taxpayers without breaking a tax secret.

The amendment of the Act on Accounting should provide a definition of a serious accounting infringement which, if performed repeatedly, is not compatible with business activity performed based on business license. The respective action should prevent the persons who seriously and repeatedly infringe the provisions of the Act on Accounting from business activities.
The Action plan contains also the action which implements on-line monitoring of transport of goods. In this respect the Slovak Ministry of Finance together with Ministry of Transport and Construction prepares the analysis of introduction of a system monitoring cross-border transportation of goods in Slovakia, i.e. ETCS system.

Please see below overview of individual actions together with the proposed timeframe: