Quarter of Sverdlovsk Region Residents Submit ‘Blank’ Tax Declarations

A quarter of Sverdlovsk Region dwellers submit ‘blank’ tax declarations, Governor of Sverdlovsk Region Evgeny Kuivashev said at the regional social security council’s meeting.

‘First of all, more and more taxpayers are now submitting ‘blank’ tax declarations. In 2011, they made up about 26% of all the registered legal entities. Also, the number of loss-making organizations is also big enough. As for the taxes paid to municipalities, there are some problems there as well: the land tax debt keeps on growing and comes to over 707m RUR now,’ Kuivashev said.

In fact, over 11,000 land allotments and over 5,000 estates that were used without any official permission (and therefore no taxes were paid) were detected in the first quarter of 2012 alone.

What is more, the share of loss-making enterprises comes to over 30% at the moment, which means the region’s treasury is losing profit tax revenues. One way to improve this is to do away with the business compartmentalization practice.

Cases when people get paid in cash for purposes of tax evasion must also be stopped: the budget is losing between 700m RUR and 2bn RUR on this, too.

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