FURS Issued €5.8m Fines to Deal with Grey Economy in 2019, with 2,826 Violations

By , 22 Jun 2020, 12:57 PM Business
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STA, 22 June 2020 - In tackling grey economy, the Financial Administration (FURS) last year paid particular attention to undeclared work, carrying out a total of 11,982 inspections, with violations detected in 22.3% of the cases. A total of EUR 5.8 million in fines was issued, shows the annual report of the relevant government commission.

In the report, the commission for the prevention of undeclared work and employment commends FURS for managing to detect a large share of irregularities through "well planned and targeted inspections".

It is FURS which received most of the reports related to violations of the labour legislation - last year it received 2,826 reports against 3,504 entities.

In 2019, it detected a total of 2,826 violations and issued a total of EUR 5.8 million in fines, while also filing eleven criminal complaints over the criminal act of undeclared employment under the penal code.

Perpetrators received suspended prison sentences in two cases, the report shows.

What the Inspectorate of Infrastructure has meanwhile emphasised as still problematic is supervision of transport of passengers with personal vehicles, where it is hard to prove undeclared work.

On the other hand, the Inspectorate of Education and Sport notes that there are still private providers of child care who avoid registration procedures in which they need to prove they meet the personnel, spatial and equipment requirements.

"This may result in risky and inadmissible situations for children, which is why such acts should be prevented by amending the relevant law with appropriate measures," the report says.

The police say in their part of the report that no significant differences were detected in comparison with the previous years, and that undeclared work and employment is the most frequent in construction, hospitality and transport sectors.

In terms of criminal acts against the labour relationship and social security, the most frequent in recent years is the failure to pay wages and social security contributions, and illegal termination of contract.

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