Bulgarian Revenue Agents Outraged by Beach Resorts Tax Evasion

Crime | August 7, 2010, Saturday // 14:30
Bulgarian Revenue Agents Outraged by Beach Resorts Tax Evasion: Bulgarian Revenue Agents Outraged by Beach Resorts Tax Evasion Bulgaria’s Revenue Agency Head, Krasimir Stefanov, says tax evasion at the country’s summer resorts is an outrage. Photo by BGNES

A probe of Bulgaria’s National Revenue Agency (NRA) discovered large-scale tax evasion in the largest beach resort “Sunny Beach.”

The concealed profits amounted to BGN 300 000 in just one night.

The Sofia tax agents made a surprise visit to 4 of the largest night clubs at the resort to find out that BGN 7 000 out of every BGN 10 000 never get declared and taxed. In one of the establishment employees were listed as making the mere BGN 65 a month, while the average officially listed monthly salary in most of the clubs and restaurants is below BGN 300 - low by Bulgarian standards. (Listing low wages is a much practiced form of tax evasion in Bulgaria where employers pay less for insurance and other benefits.)

Another stark violation discovered overnight is the fact that one of the most popular clubs in “Sunny Beach” declared monthly revenues from entrance fees in the amount of BGN 10, while the tax agents established that these fees add up to BGN 4 000 in just 5 hours.

Retailers failing to give a receipt are also among the violators.

NRA inform they will continue to monitor all merchants throughout the entire summer season while the owners of the largest night clubs will be audited.

“What is happening at Bulgaria’s beach resorts is an outrage and a disgrace. Those people are mocking the entire society. If owners conceal 2/3 of their revenues, we will watch them all summer long and based on information collected this season will tax them for years back,” NRA Director, Krasimir Stefanov, says.

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Tags: NRA, NRA Director, Revenue Agency, revenues, Krasimir Stefanov, tax evasion

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