[TV PINK] E-fiscalization for countering shadow economy and better tax collection

Marko Danon, Head of the Competitiveness Unit at NALED, spoke for TV Pink about the importance of the new fiscalization system, highlighting that this is a program that contributes to further countering of shadow economy, and allows the state and businesses to catch up with other countries in Europe.

- I think that the emphasis of this system is that now in real time the Tax Administration can receive huge amounts of data from the entire economy, which means that the Tax Administration emphasizes the analysis of these data, and uses them to determine the patterns of how economy should function in certain sectors, regions, or cities should function in some average sense. Some significant deviations from these patterns should lead to inspections’ visits, Danon explained.

According to him, every visit by inspection would lead to identifying irregularities, which means the Tax Administrations that performs the inspection gets more efficient, unfair competition is reduced, and further on, this means better tax collection and better and more extensive public services.

He reminded, for example, of Croatia, where before the introduction of such a system, only 10% of inspections visits resulted in determined irregularities, and when the system was introduced in the last few years, it reached over 60%.