VAT Fraud Robs Bulgaria's State Budget of BGN 2B Annually
Bulgaria's state budget loses BGN 2B annually due to VAT fraud, according to data of the Economic Research Institute with the Bulgarian Academy of Sciences.
Taking into account the uncollected excise duty, losses swell up to BGN 4B per year, the Director of the Institute Prof. Mitko Dimitrov said, cited by Cross news agency.
"There is a sudden increase in fraud, particularly with the onset of the crisis. There is a clear upward trend of uncollected VAT as a result of tax evasion," Dimitrov explained.
According to him, the share of gray economy has remained very high - between 35% - 40% over a long period of time.
60 percent of businesses stated that VAT collection is avoided by corruption and fictitious cash flows of fictitious companies.
- » Unrefunded VAT to Bulgarian Companies at BGN 113.6 M by end-May
- » Moody’s Downgrades DSK and Raiffeisen Banks
- » ECB 'to Extend Backstop to Bulgaria' over Greece Crisis
- » Bulgarian Development Bank to Get EUR 150 M for Energy Retrofitting of Homes
- » Deposits in Bulgarian Banks Increased to Record Level in Past Year
- » WSJ: International Investors in Bulgaria’s KTB Demand Their Money Back