“Analyzing the bank account statements, it was found that funds were regularly transferred to the resident’s account from various individuals,” says Judita Stankienė, head of Kaunas AVMI. “Some payments were made without a clear purpose or using generic entries such as ‘payment via mobile app,’ ‘top-up,’ ‘fee,’ ‘transfer,’ ‘money transfer,’ or even the symbol ‘.’.”
During the inspection, it also became clear that the same individuals sometimes explicitly stated that they were paying for goods, but at other times omitted the payment purpose or described it abstractly. Comparing the bank account data with the submitted individual activity accounting journals, it was found that only part of the actual income received was declared.
Assessing the regularity of inflows, their volume, the number of persons making payments, and repetition, it was concluded that the funds were directly related to the conducted commercial activity. Therefore, those inflows whose purpose was not clearly indicated were recognized as individual activity income, which should have been declared and taxed according to the legal regulations.
It was found that the resident did not declare more than half a million euros in income. During the inspection, nearly 200 thousand euros in taxes, 41 thousand euros in late payment interest, and about 100 thousand euros in fines were additionally calculated for her.
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Kaunas AVMI draws attention to the fact that in practice, cases still occur where both personal funds and individual activity income are mixed in the same bank account. To avoid ambiguities and possible tax risks, residents conducting individual activities are recommended to use a separate bank account for their activities.
VMI reminds that residents who have encountered dishonest sellers or noticed other tax violations can report this to VMI by phone at +370 5 260 5060, as well as by filling out an electronic form on the VMI website. The anonymity of informants is guaranteed.
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