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Taxman plans undercover visits to shops, restaurants and tourist rental properties

barportugalIn its annual ‘hollow threat’ exercise, Portugal’s tax authority said today that its inspectors will be out in the field this year, catching out certain categories of low-paid workers, in collaboration with other agencies such as Social Security and ASAE.

The tax inspectors will give priority to restaurants, hotels and the property rental market, and will be making unannounced visits. Online businesses and building renovations also will be targeted, claims the Tax Authority.

According to the National Plan for Tax and Customs Inspection, 37% of tax inspections should take place in the field this year, which is considered "a strong deterrent to voluntary compliance."

The joint actions will focus on sectors with high signs of fraud such as the retail trade, hotels, local accommodation and catering, as examples.

The tax authority also plans to extend the number of inspections carried out by undercover inspectors, this has been allowed since 2014, during which an inspector can “pretend to be an ordinary citizen” to check that shops and restaurants are complying with the laws covering billing.

It is also 'hoped,' that these inspectors will bring in €1,500 million in tax owed and fines income.

The tax authority issues these press releases every year, yet seldom broadcasts overall results, despite highlighting a few high-profile busts of illegal workers in restaurants during the summer peak tourist season.

As for inspecting local accommodation premises, there have been many such threats over the years with the only ones inspected being those which have taken the trouble and effort to become Alojamento Local (AL) compliant.

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Comments  

0 #8 Al Bean 2017-03-19 11:55
[quote name="Eddy P"]n't come quick enough but I fear they won't be looking at the right places.
Personally, I would point them in the direction of Urbanizacao Vale da Telha where the Surfing community has taken over and rents all sorts of premises and I believe are not registered or taxed properly.
Also, if they are looking for tax that is either unpaid or tax that could be available if individuals were registered properly within the law. Additionally, there are a number of people still using cars that were purchased in their original country of residence that have not been matriculated or are not maintained and insured as in legal requirements of this country, they, the Inspectorate, will find many of these also on the Urbanizacao of VdT, Aljezur. The law is quite clear, living here for 183 days or more and one should register on the Portuguese system - simple. Those within VdT have not and are therefore

How easy is it to matriculate a vehicle and at what cost. The charges that these thieves impose on those wishing to become 'legal' are prohibitively high. I had a car that was worth around £1,500 in the UK and it would have cost €2400 to matriculate. Before anyone says well that's the law, well not according to UE it isn't! Portugal completely ignores all sorts of rulings from the EU such as scraping the disgraceful A22 motorway tolls paid for by the EU. The country is corrupt and run by crooks. Retrospective tax changes and ludicrous laws. I'm out. Thank goodness!
-1 #7 Eddy P 2017-03-12 15:01
n't come quick enough but I fear they won't be looking at the right places.
Personally, I would point them in the direction of Urbanizacao Vale da Telha where the Surfing community has taken over and rents all sorts of premises and I believe are not registered or taxed properly.
Also, if they are looking for tax that is either unpaid or tax that could be available if individuals were registered properly within the law. Additionally, there are a number of people still using cars that were purchased in their original country of residence that have not been matriculated or are not maintained and insured as in legal requirements of this country, they, the Inspectorate, will find many of these also on the Urbanizacao of VdT, Aljezur. The law is quite clear, living here for 183 days or more and one should register on the Portuguese system - simple. Those within VdT have not and are therefore breaking the law. The System should should visit and catch up with these who the best of both worlds!
0 #6 Steve.O 2017-03-11 16:13
This current talk about multi speed Europe is way off. It implies some movement forward - so what about "no speed Portugal"?

Schengens Freedom of Movement is far more than just weaker members citizens swarming all over stronger, better managed EU countries. It also expressly mandates that all EU member states do everything necessary to help the establishment of businesses. By foreigners as well as their own natives.

Portugal's AL regulation have only ever been about stopping the legal growth of this sector - as it brings in competition from elsewhere in the EU. Their nightmare - Effective Occupation. After 30 years, by now every Concelho should have at least half a dozen trained up in business tourism growth.
+3 #5 CHARLY 2017-03-11 10:33
As everybody knows ASAE "refuses" to do the dirty job that Tourismo want them to do and furthermore NO single Camara is willing to help in no way. Conclusion: the situation will never be solved unless.... intelligent people piut in place an intelligent structure to do an intelligent work!
Is that possible? Well look at Germany, Austria, Switserland, France, Belgium and the Canary Islands where100% of all small tourists premisses ARE licensed. A good piece of advice to the Portugese: simply IMITATE your succesful neighbours, it's as simple as that.
+1 #4 dw 2017-03-11 09:02
No mention of course of the trillions hidden in offshore trusts in Panama, BVI, Cayman etc.
+1 #3 R 2017-03-10 23:01
In addition, support services to the letting/management/gardening/m aintenance/pool cleaning are done with green receipts /in case one requires documentation of a payment). They do not have to add VAT up to Euro 10.000 per annum. If income is about to exceed this limit, it is more rule than exemption that a client is offered the choice to settle in cash without VAT. If this is not acceptable to the client, the service provider often offers payment through a green receipt of a relative… If you run a legitimate business to offer property management and letting services it is very difficult to compete with this. Moreover, it is especially sour if you take inconsideration that the much needed income to support the government budget is coming from businesses that are making an effort to stay within the law but at the same time do not get the necessary protection from law enforcing entities to allow them to run their business.
+1 #2 R 2017-03-10 23:01
There we go again! All hot air.
Every year around this time we see comments like this, lip service. For those who are legal - about 20% of available accommodation in the Algarve - one can only hope that this time a serious effort is made to put an end to the unfair competition from illegal lets. Homeowners who are not AL registered are able to under price their dwellings with the assistance of property managers who are operating outside of the law, creating unfair competition to those whose dealings are legal /at an extra cost). It is mind boggling that after 8 years from introduction of AL legislation only 20% complies. Yes the government doesn’t make it easy and some issues related to short term letting are questionable if not outright unfair. However, countries are entitled to set their own rules. If one disagrees, do not invest.
+3 #1 CHARLY 2017-03-10 22:46
What a nice joke. Only the date of the launch of this press release is not so good choosen : they had better wait till APRIL 1st !

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