Labor relations are the basis of interaction between employer and employee, regulated by the Labor Code of the Republic of Belarus.

When paying wages and other income to employees, the employer is obliged, in accordance with current legislation, to withhold and remit personal income tax to the budget. All operations related to labor payment must be documented and reflected in accounting and tax records.

However, some companies use various tax evasion schemes, including by substituting labor relations with civil-law ones. The desire of an economic entity to gain profit while conducting entrepreneurial activity is understandable, but one should not forget about the applicable rules—norms, in particular, tax legislation, neglect of which can lead to quite negative consequences.

Tax evasion schemes used by economic entities are successfully thwarted by tax authorities.

Thus, during an

A construction LLC from Bobruisk, in order to avoid full tax payment, concluded fictitious contracts for construction work that subcontracting organizations actually did not perform. The audit also established facts of payment to officially unemployed employees. As a result of the audit, taxes and penalties amounting to almost 125 thousand rubles have been charged for payment. Criminal proceedings have been initiated against the organization's manager.

In total, as a result of field inspections conducted by the tax authorities of Mogilev Region in the first half of the year, 46 cases of non-payment of personal income tax were identified. Amounts of 3.4 million rubles of personal income tax have been charged for payment into the budget.

Once again, it should be noted that the employer's duty is the formal registration of employment relations. The absence of a written employment contract (agreement) and payment of unofficial wages pose a risk to the employee. Therefore, an employee who is offered a salary 'in an envelope' must be aware of the possible consequences for himself:

— not receive a pension and benefits in full due to incomplete payment of insurance contributions for compulsory pension and medical insurance;

• not receive vacation pay, settlement upon dismissal;
• not receive full payment of sick leave;
• be refused issuance of a visa for travel abroad;
• not receive wages in case of any conflict with the employer; — not receive social guarantees related to layoffs, downtime, training, childbirth, occupational accidents or professional diseases and other life situations;
• not obtain a bank loan for purchasing housing, paying for education, treatment, etc.

Compliance with tax legislation is not only an obligation but also the foundation of trustful relations between the state, business, and society.

The conclusion is obvious: envelopes should contain only letters!