The ITS discovered companies that provided housing at very low prices

“For example, a two-apartment apartment with a common terrace, entrance and body of water was built with the funds of a company for 300,000 Eur. During the first inspection, and only at the request of the tax administrator, an apartment was sold to the director (and shareholder) of the company and the other remained as the headquarters of the company, although the company has administrative premises at a different address where all employees work, “said Vidas Osipovas., Director of the Control Department of Panevėžys CSTI .

According to him, for several years the company used to pay the running costs of the department, which was supposedly used for an office. After another inspection, tax specialists discovered that the second apartment was not used for commercial purposes, therefore it was calculated that the company would pay 60,000 euros in budget taxes, as well as interest and penalties.

The director and shareholder of another Panevėžys company rented a house from his own company for 80 euros / month, and an apartment in the capital for his student daughter, for which he paid with the company’s funds.

“In the previous case, the manager 300 sq. M. m, renting a house near the city center was decoupled at only 80 euros a month, when the rental market price was almost six times higher,” says STI .

The ITS recognized this situation as an income of the principal in kind, from which taxes must be paid. The rent paid from the company account for the apartment in Vilnius, where the director’s daughter lived, was also recognized as income in kind. A total of € 7,000 was accrued to the shareholder in contributions from GPM, PSD and VSD.

A Molėtai businessman also bought an apartment in his own company’s capital on preferential terms. The director and shareholder of the company bought the apartment, whose market price at that time amounted to 173,000 euros, for 45,000 euros.

“This benefit received by the director (EUR 128,000) was recognized as income in kind. Since income in kind was provided by the company, the obligation to pay personal income tax fell to the company. For this, the company was charged almost 37,500 GPM, default interest and fines.

In addition, an investigation into the company’s activities revealed that it did not file on time and did not pay income or personal income tax for several years. For this, the company has been charged 51,500 euros as income tax and personal income, as well as interest and fines. In total, the company will add 89,000 Eur to the budget.

“The STI monitors that there are still cases in which private consumption is carried out at the company’s expense. If we talk about real estate, the analysis carried out showed that only in 2019. Real estate companies acquired 4.5 times more than in 2015. We are speaking of more than half a thousand companies that have acquired almost a thousand objects, possibly used for private purposes. The tax administrator considers the coverage of private needs with company funds not as a mistake, but as an abuse “, says the head of the CSTI Panevėžys Control Department.

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