In 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.
