AADE has focused on cases of companies and freelancers where deductible expenses are inflated. [THE ASSOCIATED PRESS]
The Ministry of National Economy and Finance and the Independent Authority for Public Revenue (AADE) are about to put an end to fake expenses declared by enterprises or the self-employed by changing the way simple receipts are issued.
Each receipt will also bear the taxpayer’s tax registration number, so that the validity of the declared data will be checked 100%, at least in the field of expenses, as reported by ministry sources. This will lead to all receipts being uploaded to the electronic books platform (myDATA), otherwise, they will not be accepted by the tax authorities.
The plan will close the loopholes for bogus expenses by businesses and professionals that are used to reduce taxable income. For example, today a professional can collect from friends, acquaintances etc gasoline receipts or from various other transactions and use them to reduce their taxable income.
AADE has already focused on cases of sole proprietorships and freelancers, where deductible expenses are inflated compared to the average for their sectors. Until the system changes so as to provide for the connection of almost all expenses with electronic books, AADE will collect data through cross-checks and will carry out an audit where large discrepancies are observed.
