Bulgaria is to produce a tax fraud prevention strategy. The Finance Ministry is combining its efforts with those of other government control authorities to look at the most effective strategies for combating illegal behavior. The new rules will be drafted for different taxes and taxable persons, bearing in mind that the largest cause of loss of tax revenue for the government comes from VAT fraud and smuggling of goods such as tobacco.
Tax fraud differs in nature from one tax to another and is also committed in relation to municipal taxes and fees. Fraud with regard to municipalities can take the form of vehicles that remain untaxed and buildings in respect of which transactions are not declared to the authorities. This type of tax evasion also needs to be taken into account in developing the strategy to combat evasion.
