Tax reforms: plan or reality? - Hungary
Some points of the agreement between the governing parties MSzP and SzDSz to bring forth tax reforms do not guarantee changes, they merely make them possible, the daily Népszabadság reports.
The VAT of non-collectable payments, for instance, may not be modified. Original plans involved making these sums refundable - why should a company get taxed for an income that was invoiced but never arrived? - but it is still problematic to ascertain the validity of these claims. This modification presupposes proper guarantees. Collective taxing will probably be introduced concerning VAT. This means that companies with the same owners will not have to pay VAT and wait for getting it back. VAT dodging is supposed to decrease due to a regulation, according to which the buyer should pay the tax, and immediately subtract it from the payment. This solution is feasible only if the buyer is an enterprise as well. The procedure is already used successfully in waste trade, and now it is being extended to computer products and real estate, too. Fines for not paying taxes are probable to increase, as well. Intentionallity would also be factored: dodgers should receive higher fines than those who simply miscalculated tax items. The capacity of the tax department will be increased. Some of the reforms require way more work: for instance, all new companies to be registered will be checked in order to avoid registration of fake enterprises. (Gazdasági Rádió)
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.