WARSAW: Poland hopes to catch out tax cheats by automatically monitoring bank transactions for high risk deals.
The Finance Ministry of Poland announced that it will soon establish an electronic verification system (EVS) using bank data to catch out VAT fraud.
The new system is meant to catch out tax cheats who issue fake invoices in order to claim unwarranted tax VAT rebates. The system will work by conducting risk analysis of transaction going through the national finance sector. If initiated, the new system could be functional as early as June this year.
In the first year of operations, the tax system could help recover 10 percent to 15 percent of the fake tax claims.
Based on the estimated recovery rate, the government of Poland could see tax revenues rise by as much as PLN 600 million in 2017, increasing to as much as PLN 1 billion.
Further, in the future, the tax detection system is expected to act as a deterrent to tax evasion, as an increasing number of taxpayers get caught out on their tax cheating.
