Slovakia Sees Success in Fight on Tax Evasion
June 25, 2014 Taxation in Slovakia
BRATISLAVA – Slovakia’s push to eliminate tax evasion is paying dividends, as tax revenues undergo a marked rise this year.
On June 24th the Ministry of Finance of Slovakia issued a new statement claiming that a recent push by the government to prevent tax evasion has yielded positive results, bringing in EUR 290 million more in tax revenues, and potentially helping the country meet its own target for lowering the national deficit.
According to the newly issued statement, over the course of this year the government will collect EUR 290 million more in taxes than was forecasted in February 2014, with the increase in collections estimated to be equivalent in size to 0.4 percent of the national GDP this year.
The positive effect of the clamp down on tax evasion will also have an ongoing impact on tax collections in the country, as the forecast for tax collections over 2015 and 2016 have been revised upward by EUR 200, and EUR 170 million in 2017.
If the forecasted increase in tax revenues eventuates, Slovakia may be able to reduce the national budget deficit to 2.6 percent of the national GDP, well within the EU mandated target of 3 percent of GDP.
Since 2012 the government of Slovakia has been actively instating measures to fight tax evasion, including a ban on cash transaction exceeding EUR 5 000 in value, and an electronic system to check the validity and presence of invoices and other financial data provided to tax authorities.