We steal everything, even condoms

"Meeting personal needs at the expense of companies is an unjustified increase in the deductions allowed by companies and the deduction of value added tax (VAT) to include the cost of purchasing personal purchases and input VAT, thus reducing both taxable corporate profits and VAT payable. personal benefits are also obtained by avoiding personal income tax (PIT) payable.

 

    In short, there are cases where, in order to avoid taxes, company managers, owners or employees meet their various private needs at the expense of the company, where the purchases made are completely unrelated to the activities of the companies. 

 

Often, when a tax administrator becomes interested in a company, it is noticeable that private needs have been met from the business pocket, ranging from food for animals, sneakers or juicers to apartments in the center of the capital or luxury yachts.

 

    Meeting personal needs from the company’s pocket is also revealed through travel, which is often formalized as business trips. The frequent use of vehicles owned by companies for non-work purposes and their use for personal gain are not properly accounted for.

 

    STI specialists, when monitoring or controlling companies, have also identified cases when many different items needed in everyday household, such as glasses, perfumes, toys, clothes, footwear or hair clippers, have been purchased at the expense of a business. A considerable part of various services that are not related to the company's activities, such as ceiling installation and catering services, are also recorded. During the inspection of one company by Kaunas CSTI specialists, it was established that it was not avoided to purchase various constructors, drones, board games or even goods for adults on behalf of the company, and the costs in supermarkets exceeded 6.3 thousands euros. All the aforesaid goods not used in the operation of the company and intended for the personal needs of the manager and his relatives. Following the above-mentioned inspection, the estimated additional amount to be paid to the budget exceeded 40 thousands euros.

 

    There are cases when furniture, small and large household appliances or apartments, garages, recreational buildings are purchased at the expense of companies. In such cases, the representatives of the companies try to prove that they have acquired the property for the installation or lease of an office under the guise of fictitious short-term lease agreements with natural persons, even though the company's activity is completely unrelated to renting or selling real estate. However, in controlling the area of ​​meeting private needs with the company's funds, the STI had to identify a number of cases when entrepreneurs built, bought or rented real estate for their personal needs.

 

    In order to ensure the proper performance of tax obligations and to identify fraudulent actions of entrepreneurs, the STI uses many different data sources and tools in its activities. This year, the tax administrator actively carried out monitoring or appropriate control actions of companies selected according to certain criteria and over 18.6 thousands companies submitted a special questionnaire on the use of cars registered on behalf of legal entities for private purposes. Under this measure, over 4 thousands companies independently revised their declarations and additionally declared over 653 thousands EUR VAT and 82 thousands EUR GPM.

 

    Records from other sources, such as i.VAZ consignment note data, are also used to identify potential abuses. Based on the data provided by i.VAZ, cases have been identified where various equipment and construction materials have been transported and unloaded at the declared addresses of the company's employees' place of residence. Attention is also paid to the information provided in the invoices. Often, after reviewing the VAT invoices for the purchase of office furniture and gathering information from the seller, it turns out that the bedroom bed was purchased at the company's expense. Based on common data sources, cases of misuse of the company's transport are also identified, when, say, a company registered in Kaunas uses a car for work only on working days, and on a public holiday the head of the company with the said car in Klaipėda region is recorded exceeding the speed limit. "

Well, entrepreneurs are people too. They also need sex and other services and goodies from society. However, after taking advantage, many entrepreneurs turn around and give nothing back to the public.