Business Account Facilitates Honest Business Environment
The government is developing the idea of business account, which is also supported by the Chamber of Commerce.
In our opinion, it simplifies provision of services and sale of goods between individuals. We hope that the business account facilitates more honest business environment and increases tax obedience.
However, we pointed out to the Ministry of Finance that the business account may bring along cases of its misuse. Although a private person provides a service to a legal entity, such transaction may be formalised as sale of goods so that a legal entity would not have to pay corporate income tax. In practice, it might be difficult for the tax administrator to assess if the transaction involves sale of goods or provision of services.