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Our pockets are getting empty
Bernardas Vilkelis, head of AB K2 LT, which manages the Lithuanian crematorium and the organization of the Rekviem funeral ceremonies, mentioned that people have started to demand transparency from both the government and companies, so the situation in the funeral sector should change little by little. Still, the current situation is not rewarding.
“Lietuvos krematoriumas in Kėdainiai cooperates with all funeral companies. We have the ability to accept all payment methods, but we even collect half of the proceeds in cash, making it difficult to fight the shadow.
And for us it is only an additional cost, because it is necessary to collect that money ”, mentioned B. Vilkelis.
Coping with the loss of a loved one, organizing and attending a funeral is a difficult experience. At such times, people think the least about the prices of services and business transparency, but B. Vilkelis advises only the usual requirement of checks and invoices everywhere, so that even when requesting funeral services, you do not become a additional headache, but a common practice. .
“It just came to our attention then. Regulations may be effective, but as long as there is no public understanding and participation, the shadow is 100 percent. It will not be caught.
People must understand that buying services in the shadows is taking money out of their own pockets and those of the children, which affects all public services ”, he explained.
He urged people to pay more often by card or bank transfer. However, so far it seems that people themselves are more used to paying in cash.
“Funeral services are not paid 10 or 15 euros, but a thousand or even several. People are probably used to paying in cash.
But in some cafes it is no longer even possible to pay in cash as the number of people willing to pay by card has increased. If this also happened in the funeral sector, the shadow would not be able to move ”, he considered.
The public must press
Rūta Skyrienė, the chairwoman of the board of the White Wave initiative, also noted that Lithuanians are more likely to settle in cash, which has already become part of the culture. Still, it needs to change.
“Many people who come to the store stop at an ATM, collect cash and only then go to a store where they pay in cash, although they can do so with a card.
But the situation changes little by little, the younger generation pays with a card, there are also cafes that have given up cash, because cash is an expensive pleasure for business: you have to count, collect, take to the bank, pay taxes to the Bank . However, if the entrepreneur does not seek to operate in the shadows, then the cash is very expensive for him and he will try to keep the cash in his business as little as possible ”, explained the interlocutor.
He stressed that the funeral sector is one of the most vulnerable in the underground economy, and prohibitions and restrictions will not solve the problem. “There are always cracks in how to circumvent bans,” he said.
According to her, the solution is only one: “The need of society is the greatest driving force: if people ask for bills, do not want to pay in cash, it will definitely change.”
R. Skrienė said that public pressure must be strict and that each customer must clearly say: “If I cannot pay by card, I will walk through the door.”
According to her, the actions of the State Tax Inspectorate (STI) could also help bring the funeral sector out of the shadows. For example, those who have checks for funeral services provided should have the opportunity to recoup a portion of their income.
The government’s decision not to allow employees to pay cash wages will also lead to a downsizing of the shadow business.
Incarceration may be imminent
The FNTT has conducted a series of pre-trial investigations into the activities of funeral homes. In most cases, these investigations were initiated on suspicion of fraudulent accounting to evade taxes. There have also been cases of illegal work in which workers have not been formally employed but have received informal pay.
“Some of these investigations were turned over to the courts, others ended on bail, because the suspects pleaded guilty and paid the calculated taxes.
We estimate that the damage caused to the state by some companies in the funeral sector could have been around 50 thousand. Festa spokeswoman Modesta Zdanauskaitė said.
He stressed that cash is the most convenient financial instrument to commit crimes and its amount in business is high. “Every time we do a search, we find cash,” he said.
The FCIS would support the proposal to improve the legal framework and slightly restrict cash payments. This would apply to all businesses, and the funeral industry is no exception.
M. Zdanauskaitė mentioned that even imprisonment of up to 4 years can be threatened by fraudulent accounting, and if incorrect data on income is provided, the most severe punishment can be imprisonment of up to 6 years.
“It just came to our attention then. So far, I don’t know of any case where freedom is taken away because of that,” he said.
