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Polish Tax Authorities Reveal Massive Tax Evasion Increase

by Ulrika Lomas, Tax-News.com, Brussels

04 February 2002

The Polish tax authorities have revealed that tax evasion and anomalies in tax payment leapt massively in the first three quarters of 2001 compared with the same period of the previous year, showing an increase of 64%.

Audits revealed that the majority of anomalies consisted of delaying payment of tax. According to Fiscal Inspection Officers, foreign currency infringements cost the government more than ZL11 billion, and illegal grants and subsidies around ZL990 million.

The authorities revealed that a massive 70% of tax failures were spotted in commercial law companies, 8.3% were due to individual tax evasion, and 3.2% were due to anomalies with civil law companies.

VAT and Excise tax fraud accounted for the majority of lost revenue (73%), with corporate income tax and personal income tax evasion costing the Polish government ZL518 million and ZL209 million in lost revenue respectively.

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