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The new orders for personal use of corporate assets restore fairness in taxation, but business meets serious difficulties with their implementation. This became clear during the first forum Business briefing: "Weekend Tax" organized by economix.bg and communications agency ProWay in cooperation with the Bulgarian Industrial Association.
Many participants said they want to respect the law and even would make adjustments for personal use of assets for previous years and pay the required tax but they experience uncertainties. "The problem is that many companies work in the shadow economy because of thoughtless laws. So be a little more tolerant to these bright companies", said a business representative to Rosen Ivanov, director of "Tax and Insurance methodology" in the NRA, who was one of the speakers.
Ivanov presented the newest changes in taxation (or the so called Weekend Tax and Natura Tax) as answers to numerous questions. “At the moment of purchase of an asset a decision must be made - full or proportional tax credit,” told Mr. Ivanov to the participants. “It is hard for a revenue authority to question your intentions to a certain date.” Ivanov explicitly said that the costs for travelling from home to the workplace, especially for company managers, are costs for private use, on which matter there is a decision of the Court of Justice of the EU.
According to the NRA, car purchases entitled to a tax credit in 2015 reached BGN 190 million. The common tax base for the period 2013-2015, including the cost of fuel and maintenance of cars, is near BGN 920 million.
The Financial Director of the BIA Stanislav Popdonchev presented the results of a survey, conducted among members of the employers' organization, according to which 60% of enterprises have assets, which are also used for personal purposes. 42% of the respondents said they have great difficulties in calculating, reporting and paying the tax, 35% experienced minor difficulties and only 23% said they did not face any difficulties. Mr. Popdonchev presented an analysis of the BIA, which shows that tax and social security laws are the most frequently changed regulations over the years.
Mr. Milen Raikov - Partner in "Ernst & Young Bulgaria" and Mr. Anton Tsonev - manager "Taxes" in the international company presented the evolution of the problem at European level and the practice of the European Court of Justice. Mr. Raykov and other participants noted that some things are inseparable and the so called "dominant use" is leading.
Tax experts Valentina Vassileva and Dimitar Voinov conducted a practical training in the second part of the forum. They had to answer numerous questions about the documentation of deliveries (for example using GPS statements), separation of personal use, especially for phones discrepancies between CIT and VAT Law, the reject of assets by VAT, adjustment of tax credit for previous periods.
