Tax end for tax haven
Many wealthy Bulgarians, living in the EU, will have to face the end of tax haven. This country has started joint inspections with the tax offices of the community’s member-states. The tax authorities of different European countries will work together and will gather information on bank accounts, real estate properties, yachts, expensive cars etc., belonging to Bulgarians with supposedly concealed incomes. Different remittances, renting incomes and real estate deals will be tracked down too. If tax officers decide that concealed incomes are available, a joint finance inspection will take place. This all became possible after the Bulgarian parliament had started to vote changes and amendments in this country’s legislation, according to EU directives. “This doesn’t mean that all Bulgarians, living abroad will be checked and inspected,” Communications Director at the National Revenue Agency /NRA/ Rossen Bachvarov commented exclusively for Radio Bulgaria. He added that if the income or the property is too much more expensive than the officially declared revenues, the tax officers will find out the actual value of the concealed income and will impose the respective tax. However, if a tax crime is registered, they will inform the prosecution. The NRA carries out 2 – 4,000 inspections of persons annually and each year it turns out that there are enough people, whose income’s origin is not legal.
Rumor says that the NRA has already a list of “targeted” Bulgarians, living abroad…
“Yes, there is such a list,” the experts confirms. “A selection is carried out each month. If the property of a Bulgarian citizen is more expensive than his or her official income, it is a matter of time tax authorities to be asked on the origin of this money. On the other hand, there is 10 percent flat tax and it turns out that is not that hard the law to be obeyed. It looks like tax discipline has improved a lot over the past few years.”
Where does the greatest number of rich Bulgarians reside?
“This issue faces different aspects,” the expert says. “Above all, significant Bulgarian capitals can be found in Switzerland and Luxembourg due to the specific bank systems. On the other hand, wherever economy is stronger and the Bulgarian diasporas are bigger, respectively, wealthier Bulgarians are situated – for instance, in Germany, Spain and Italy. However, there is no such a specific national profile within the EU that the rich Bulgarians opt only for.”
Tax officials will open Swiss bank accounts too. Those will receive information thanks to the new convention for avoidance of double taxation.
It is a public secret that over 150 Bulgarians keep some EUR 300 mln. in Swiss vaults.
“Yes, this is true and one shouldn’t be surprised by this fact,” Mr. Bachvarov confirms. “By the way, the EU has launched over the past years quite an aggressive policy, regarding the so-called tax havens, such as Switzerland and Luxembourg. One could keep a lot of money there completely anonymously till recently. It turned out to be a problem for the EU and after a few legislative changes these two countries now must submit a tax summary to tax authorities across the entire EU on their citizens’ deposits tax rates. Thus the principal amount can be easily determined.”
Now where do you think that these capitals will be directed to, after the pressure put by the EU for more transparency and control? This money is not only Bulgarian, but also Greek, Russian etc. …
“I find it really difficult to answer this question. The money may be returned to their “native” countries or may be invested in offshore zones. This is a hard forecast, but since Bulgaria is very attractive with its tax system and low tax rates, some of this money may return here officially and the official taxes for them may be paid.”
Source: bnr.bg
(27.09.2012)