Fictional companies and falsified books targeted

Competition

The Justice Ministry is working on a draft proposal to amend the criminal code that would penalize a still widespread practice of operating fictitious companies as well as audit firms found guilty of concealing or falsifying company figures, Világgazdaság reported yesterday. Offending accountants can face penalties ranging from community service, fines to 3 year imprisonment, while an individual found guilty of filing false company data with the registry court may receive a prison sentence of up to 2 years. Last year altogether 1,430 companies were deleted from the official company registry as non-existent. This compares to 3,748 in 2002 and 2,484 in 2003 and 1,430 in 2004. The amendment proposal is due to come before Parliament next month. (Világgazdaság)

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Startups