Union presents 26 proposals to combat fraud and tax evasion

The Tax Workers' Union (STI) presented 26 proposals to the Government to strengthen the fight against fraud and tax evasion, including cross-referencing judicial data with the e-invoice system or tighter controls on digital platforms and payments.

The list of proposals was released today and includes the suggestion that all payments over 10 euros in any commercial establishment must be made electronically to a bank account registered with the Tax Authority (AT) for that purpose.

Tax officials add that it is necessary to restore the teams that carried out merchandise circulation control actions, considering that the current format is predictable and allows the movement of goods related to the parallel economy.

The union also requests that the AT collect, from the courts, information on legal proceedings in which lawyers are appointed as legal representatives and that information be cross-referenced with the e-invoice portal, in order to assess the issuance of an invoice or receipt for fees to the client.

The STI called for greater control over automatic payment methods, such as MBWay or payment references at ATMs, and suggested the use of artificial intelligence tools and specific, decentralized teams to control sales made or advertised through online platforms – such as social networks.

In addition to these measures, tax officials suggest that residents outside the European Union (EU) should not be allowed to manage companies with headquarters in Portugal, or that they should switch “by choice” between VAT regimes, namely from the standard quarterly regime to the standard monthly regime.

The letter addressed to the State Secretariat for Tax Affairs also suggests that simplification can play an important role in combating tax fraud and evasion, particularly by minimizing tax benefits and subsidies, opting instead for tax rate reductions and tax simplification, or by harmonizing tax rates within the EU.

Tax officials believe that expanding the simplified regime for small businesses and creating simpler taxation criteria could allow the AT to focus on larger companies.

In the area of oversight, the STI calls for incentives for proactive workers in combating fraud and tax evasion, so that they can act immediately and reinforce actions on the streets, and for an amendment to the article of the 2009 Cybercrime Law on illegitimate access to computer systems, so that it does not become "a constraint on the work of the AT."

In the opinion of tax officials, managers of companies with debts above a certain amount or that are insolvent “should be prevented from performing management functions.”

The recommendations also include the end of the margin regime in the automobile trade, the application of the 'reverse charge' in the provision of labor - "in order to combat fraud in companies that 'falsely' provide labor" -, or the implementation of computer audits provided for in the Supplementary Regime of the Tax and Customs Inspection Procedure.

The Tax Workers' Union (STI) presented 26 proposals to the Government to strengthen the fight against fraud and tax evasion, including cross-referencing judicial data with the e-invoice system or tighter controls on digital platforms and payments.

The list of proposals was released today and includes the suggestion that all payments over 10 euros in any commercial establishment must be made electronically to a bank account registered with the Tax Authority (AT) for that purpose.

Tax officials add that it is necessary to restore the teams that carried out merchandise circulation control actions, considering that the current format is predictable and allows the movement of goods related to the parallel economy.

The union also requests that the AT collect, from the courts, information on legal proceedings in which lawyers are appointed as legal representatives and that information be cross-referenced with the e-invoice portal, in order to assess the issuance of an invoice or receipt for fees to the client.

The STI called for greater control over automatic payment methods, such as MBWay or payment references at ATMs, and suggested the use of artificial intelligence tools and specific, decentralized teams to control sales made or advertised through online platforms – such as social networks.

In addition to these measures, tax officials suggest that residents outside the European Union (EU) should not be allowed to manage companies with headquarters in Portugal, or that they should switch “by choice” between VAT regimes, namely from the standard quarterly regime to the standard monthly regime.

The letter addressed to the State Secretariat for Tax Affairs also suggests that simplification can play an important role in combating tax fraud and evasion, particularly by minimizing tax benefits and subsidies, opting instead for tax rate reductions and tax simplification, or by harmonizing tax rates within the EU.

Tax officials believe that expanding the simplified regime for small businesses and creating simpler taxation criteria could allow the AT to focus on larger companies.

In the area of oversight, the STI calls for incentives for proactive workers in combating fraud and tax evasion, so that they can act immediately and reinforce actions on the streets, and for an amendment to the article of the 2009 Cybercrime Law on illegitimate access to computer systems, so that it does not become "a constraint on the work of the AT."

In the opinion of tax officials, managers of companies with debts above a certain amount or that are insolvent “should be prevented from performing management functions.”

The recommendations also include the end of the margin regime in the automobile trade, the application of the 'reverse charge' in the provision of labor - "in order to combat fraud in companies that 'falsely' provide labor" -, or the implementation of computer audits provided for in the Supplementary Regime of the Tax and Customs Inspection Procedure.

The Tax Workers' Union (STI) presented 26 proposals to the Government to strengthen the fight against fraud and tax evasion, including cross-referencing judicial data with the e-invoice system or tighter controls on digital platforms and payments.

The list of proposals was released today and includes the suggestion that all payments over 10 euros in any commercial establishment must be made electronically to a bank account registered with the Tax Authority (AT) for that purpose.

Tax officials add that it is necessary to restore the teams that carried out merchandise circulation control actions, considering that the current format is predictable and allows the movement of goods related to the parallel economy.

The union also requests that the AT collect, from the courts, information on legal proceedings in which lawyers are appointed as legal representatives and that information be cross-referenced with the e-invoice portal, in order to assess the issuance of an invoice or receipt for fees to the client.

The STI called for greater control over automatic payment methods, such as MBWay or payment references at ATMs, and suggested the use of artificial intelligence tools and specific, decentralized teams to control sales made or advertised through online platforms – such as social networks.

In addition to these measures, tax officials suggest that residents outside the European Union (EU) should not be allowed to manage companies with headquarters in Portugal, or that they should switch “by choice” between VAT regimes, namely from the standard quarterly regime to the standard monthly regime.

The letter addressed to the State Secretariat for Tax Affairs also suggests that simplification can play an important role in combating tax fraud and evasion, particularly by minimizing tax benefits and subsidies, opting instead for tax rate reductions and tax simplification, or by harmonizing tax rates within the EU.

Tax officials believe that expanding the simplified regime for small businesses and creating simpler taxation criteria could allow the AT to focus on larger companies.

In the area of oversight, the STI calls for incentives for proactive workers in combating fraud and tax evasion, so that they can act immediately and reinforce actions on the streets, and for an amendment to the article of the 2009 Cybercrime Law on illegitimate access to computer systems, so that it does not become "a constraint on the work of the AT."

In the opinion of tax officials, managers of companies with debts above a certain amount or that are insolvent “should be prevented from performing management functions.”

The recommendations also include the end of the margin regime in the automobile trade, the application of the 'reverse charge' in the provision of labor - "in order to combat fraud in companies that 'falsely' provide labor" -, or the implementation of computer audits provided for in the Supplementary Regime of the Tax and Customs Inspection Procedure.