What is the threat of the taxpayer for non-disclosure of income?


Showing revenues in the annual tax return is the responsibility of every taxpayer, regardless of the source from which the funds come from. However, it should be remembered that the mere submission of a declaration will not guarantee impunity for a person who has not shown all sources of income in his / her testimony.

When can inspections be expected? Tax authorities pay attention to such revenues that are not covered by the sources indicated by the taxpayer, or when the expenses incurred in a given tax year and the value of the accumulated property, if they are not covered by the property from the previous accounting year. In practice, such control may occur, for example, in the case of the acquisition of real estate with a value significantly exceeding the disclosed revenues.

Before the tax authority decides that the taxpayer is actually guilty of undisclosing part of his income, it will be required to conduct the proceedings. Such a process is aimed at in-depth analysis of the situation and gathering evidence regarding hidden revenues. The course of the procedure should be completed with the issuance of a decision. In such a document, the tax authority should indicate the justification:

  • factual - that is, facts which he established, credible evidence, possibly reasons for rejecting evidence considered unreliable,
  • legal - in the form of a legal basis, with specific provisions.

The tax authority, after determining the taxpayer's guilt, imposes an obligation on him to pay 75% of the amount of hidden income. Importantly, in such a case, no penalty interest is charged - this is due to the fact that it is difficult to determine the moment from which the delay in tax payment should be charged. It is assumed that 75% of the tax is compensated by an additional penalty.

In addition to charging a "penalty" tax, an unreliable payer may be charged with an additional penalty. According to the regulations, exposing the tax to depletion is punishable by a fine of up to 720 daily rates, imprisonment or both penalties jointly.