More than 60% of the companies inspected by the State Fiscal Service (SFS) failed to comply with tax legislation requirements in terms of the completeness of accruals, payment of salaries and other income to their employees, the SFS press service reported, citing to Head of Individual Tax and Duties Department Pavlo Dronyak.
”During the inspection of taxpayers regarding compliance with tax legislation in terms of the completeness of accruals, payment of salaries and other income to employees, violations were identified in 60.6% of the inspected taxpayers,” a statement read.
Notably, the most common violations were related to unofficial salaries (off-the book payment schemes) and the use of unregistered labor.
”Unscrupulous employers harm not only the budget due to non-payment of relevant taxes and single social security tax, but, first and foremost, the employees themselves, depriving them of the right to social security and a decent pension,” Dronyak was quoted by the press service as saying.
According to the report, based on results of the inspections, additional accruals to the budget under personal income tax amounted to UAH 272 million, under single social security tax to UAH 61 million and under military tax to over UAH 6 million.
In January-July this year, SFS officers identified more than 92,000 individuals who were employed without signing a labor agreement. Over UAH 28 million in personal income tax payments and over UAH 31 million in single social security tax payments were contributed to the budget.
In addition, 32,000 individuals were identified who had been carrying out entrepreneurial activity without official registration. They paid about UAH 15 million in taxes to the budget.
As UNIAN reported earlier, the reduction in the rate of single social security tax from 36% to 22% in the first half of this year did not help bring salaries in the spotlight, according to MP Viktor Pynzenyk (the Petro Poroshenko Bloc faction).
According to data on the proceeds from single social security tax payments in January-June 2016, provided by Pynzenyk, following a decrease in the tax rate from 36% to 22%, revenues of the Pension Fund, formed by means of this tax collection, fell by 36% in the first six months of 2016.