Tax evasion penalties in Belarus subject to dramatic increase

Belarus is going to sharply increase penalties for business entities engaged in tax evasion. This initiative has been proposed by the Ministry of Taxes and Duties.

As stated by the Deputy Minister for Taxes and Levies Vasil Kamyanko, today there is only a penalty of 20% of the unpaid tax. It is proposed to increase this figure to 100%. At the same time officials bring up the foreign experience. For example, in Germany the penalty is 300%.

BELTA reports that in Belarus the fine for tax evasion for economic entities used to be 300%. Later, however, the penalties were substantially reduced, but the desired effect was not achieved - the number of offenders stayed the same. A lot of business entities are deliberately involved in pseudo-entrepreneurship.

According to BelaPAN, the initiative of the Ministry of Taxes and Duties will be considered by the government. If the Council of Ministers supports it, officials will develop draft regulatory acts.

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