Bulgaria’s National Revenue Agency has initiated inspections of 13 Bulgarian companies organizing concerts of international music performers in the country.

This was announced Tuesday by Krasimir Stefanov, Director of the NRA, who said the measures are part of the Agency’s program to enforce taxation legislation with regard to the entertainment business.

Bulgarian personal income tax law requires that 10% of the fees received by every single foreign performer with a concert in Bulgaria be paid to the state. Thus, the tax collecting campaign may affect US pop star Madonna, who had a concert in Sofia in August 2009 as well as a number of other foreign performers.

Stefanov said none of the 13 Bulgarian companies in question paid the tax on the fees of the performers they brought to Bulgaria.

He also announced that 21 out of a total of 37 popfolk and pop stars inspected recently by the NRA would have to be summoned for written explanations of their financial situation since a number of discrepancies had been found in their tax returns and their actual finances.

For instance, one of the popfolk singers bought two apartments worth BGN 206 000, but declared no income in the last five years.