TIGHTER BALEARIC CONTROL ON TAX FRAUD

Staff Reporter TAX fraud uncovered in the Balearics in 2003 amounted to 216 million euros, 27 percent more than the previous year and this year the spotlight will be on moorings. The Balearic tax office is to set minimum and maximum values for moorings as part of its fight against tax fraud. A complete review of marinas and moorings is to be carried out and once the minimum and maximum values have been set, any tax declarations below the registered value will be investigated. According to official figures released yesterday, illegal contraband accounted for 23.8 million euros of this total. Balearic government tax officer, Ignacio Fernández Alegría, explained that the greatest number of tax fraud cases brought to light on the islands were unearthed in the real estate and tourist industries. It is in these specific areas that the Tax authorities are going to tighten up their control through the Balearic government making relevant information available to town councils. This will help avoid, for example, “irregularities” in the process of purchase and sale of property between residents and foreigners. Results of increased controls enforced by the Balearic Tax authorities have proved to be 13.3 percent more effective in its fight against fraud, recovering booty to the tune of some 240 million euros. Similarly, in 2003, authorities clawed back 15 percent more in tax debt, amounting to 67.1 million euros, which remained owing to the government after the fiscal year deadline for voluntary payment had passed. Fernandez Alegria pointed to the considerable growth in the number of people who chose to make their income declarations on the Internet. In total, 63'046 declarations of income in the Balearic Islands were presented to Tax authorities, an 18 percent increase on 2002. Nevertheless, the “most spectacular” growth was in the number of VAT and company declarations which grew by 89.9 percent in 2003 in comparison with the previous year. A new service begun in 2003, permitting maternity deductions of 100 euros a month to working mothers with children of under 3 years. The scheme benefitted 17'901 mothers and 19'846 children in the Balearics, who received in total more than 15.3 million euros.