Bulgaria's Revenue Agency Reports Uncollectible Debts at 80%

Finance | August 13, 2013, Tuesday // 12:07|  views

Overdue debts to the state budget have grown by BGN 2 B in a year, reaching BGN 18.9 B in end-2012, according to a report of Bulgaria's National Revenue Agency (NRA).

According to NRA data, 80% of the debts are uncollectible.

In 2012, the number of attempts at tax and social security fraud decreased on an annual basis, reaching 18%, or around 1/5 of all revenues of the NRA for 2012.

If taxpayers fail to submit an explicit request to be cleared of old debt under statutes of limitations by end-2013, starting 2014, the NRA will start automatically deducting sums from each of their payments to the budget, following the rule to collect the oldest debts first.

The NRA has estimated debts amounting to over BGN 15 B as difficult to collect, while a total of BGN 11.2 B has been evaluated as tax fraud through inspection certificates under the VAT Act.

The NRA admits that it is not only old debts, but also newly accumulated debts under inspection certificates which are hard to collect, because these sums are owed by persons who lack property against which enforcement measures can be targeted.

In 2012, for instance, less than 1% of old debts, as well as 9.65% of new debts established through audit, were settled.

In 2012, fresh overdue debts worth BGN 3.4 B were accumulated, of which BGN 2.4 B was established through inspection certificates.

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Tags: National Revenue Agency, NRA, VAT fraud, VAT Act, fraud scheme


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