Tax Board's Employee Register Seen as Being Off to Good Start
The employees' register that became mandatory for companies at the beginning of this month has resulted in 51,000 more people being officially listed as employed, helping reduce abuse of the system by people who draw unemployment benefits while working jobs as well as increasing tax compliance, say officials.
As expected, the greatest portion of the increase - 5,000 - took place in construction, which is the most problematic sector for undeclared income.
The Tax and Customs Board sees the register as being off to a successful start, ETV reported.
A total of 2,600 people who were registered unemployed in June but were actually working during that time are now officially accounted for.
The register contained 589,660 employees as of July 22.
Most people work on the basis of employment contract, but 2,200 people are entered as voluntary personnel. In such cases, tax officials expressed optimism that abusers of the system would nevertheless be dealt with.
Two-thirds of companies say that employee registration system will help battle payment of undeclared cash as wages. Mait Palts, the director of the Chamber of Commerce and Industry, said the system was superior to adding greater administrative burden.