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Hungary: Single account to confuse social insurance funds

The government might have to give up their program aiming at the decrease of tax administration.

Not only have companies rejected the idea of merging small taxes, but administration experts have deduced that if companies paid all social insurance fees to a single account, the pension insurance and health care insurance funds would not be able to manage bookkeeping, creating an annual report and having it audited. Though this proposal can be found in the tax bill put before to the parliament, the Finance Ministry is rumored to be considering withdrawing it.

The 2006 budget of the pension insurance fund was audited with an escape clause because only the total income was justifiable. Additionally, the Hungarian State Treasury (MÁK) can produce no declaration on the incomes of the approximately 800,000 public servants that tax authority APEH can process. As to APEH, the authority tends to send bad or no information on the salary of up to 25% of its employees. Even if companies could pay all fees on one account, they would have to maintain and declare them separately so their administration burdens would weigh roughly the same. (Napi Gazdaság)