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Bulgaria: Introduction of Controls on the Movement of High Fiscal Risk Goods

13 January 2014   (0 Comments)
Posted by: Authors: Alexander Rangelov and Elisaveta Georgiev
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Authors: Alexander Rangelov and Elisaveta Georgieva (CMS Cameron McKenna)

From 1 January 2014, new regime of fiscal control was introduced on the movement of goods with high fiscal risk within Bulgaria.

The list of goods to which the measures apply will be determined by the Minister of Finance and will cover goods delivered within the territory of Bulgaria or in transit to another country but not those under customs control.

The aim of the controls is to prevent tax avoidance and evasion. They will be exercised by specially-appointed officers from the National Revenue Agency, Fiscal Control Directorate, with powers to:

  • stop vehicles at fiscal control points and en route
  • review documentation and goods
  • check the driver’s documents
  • require drivers to sign a declaration,
  • install tracking devices on vehicles
  • impose on-site controls over loading and unloading
  • impose security measures (including preliminary ones)

These measures may not be used to establish tax liabilities but only to establish important facts and circumstances relating to tax liabilities.

Information about the movement and activities of high fiscal risk goods shall be provided to an online Fiscal Control register.

Failure to comply with the new regime can lead to a fine of BGN 1,000 – BGN 50,000.

Other important amendments in force from 1 January 2014 are:

Other EU Member States may ask the competent authority to seek a court order for disclosure of confidential banking information by credit institutions and investment companies trading on regulated markets.

Employers, the self-employed, pension funds, insurance companies, the Registry Agency and the National Social Security Institute are also required to provide information (automatically by 30 April to the National Revenue Agency) related to ownership rights and income received by EU tax residents from any immovable property or pensions.

There is a simplified procedure for applying to the National Revenue Agency to defer or reschedule tax and social security liabilities if they are established with a tax assessment act.  Permission should be obtained within one month after all documents have been submitted (but could be extended to two months in some cases).  Where permission is not granted, there is no right of appeal. The procedure does not apply:

  • to excise duties or local taxes
  • to businesses in liquidation or insolvency proceedings, or executing restructuring plans
  • when properties are put up for public sale

Law: amendments to the Tax and Social Security Proceedings Code, the National Revenue Agency Act, the Corporate Income Tax Act, the Social Security Code and the Excise Duties and Warehouses Act, promulgated in State Gazette No. 109/2013. 

This article first appeared on lexology.com.



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