Government takes aim at 'fuel mafia' tax fraud

Photo: Glowimages

The aim is to curtail illegal sales of gasoline and diesel brought into distribution networks by the so-called fuel mafia.

Data reported by the Polish Chamber of Oil Industry and Commerce shows that in 2012, losses incurred by the State Treasury as a result of this unlawful activity amounted to 5 billion zloty, roughly 1.2 billion euro.

The sum greatly increased in 2013, when it was estimated that unpaid taxes from unaccounted sales of diesel fuel alone deprived the State of 5.8 billion zloty, or some 1.4 billion euro in revenue.

Deputy finance minister Agnieszka Krolikowska has told the Polish Press Agency (PAP) that irregularities in fuel sales constitute 30 percent of all cases of tax fraud discovered by revenue inspectors.

In the 346 cases referred for prosecution in 2013, the sum in unpaid VAT and excise tax amounted to almost 1.3 billion zloty , including 400 million zloty in overdue tax payments discovered, and another 39 million zloty in undervalued tax declarations filed by dishonest fuel distributors. (ss/nh)