Labor relations – this is the basis for the interaction between employer and employee, regulated by the Labor Code of the Republic of Belarus.

Hiring when paying salaries and other employee income, employers are required under current legislation to withhold and transfer income tax from physical persons to the budget. All operations related to labor payment must have documentary evidence and be reflected in accounting and tax records.

However, some companies use various schemes to avoid tax payments, including substituting civil-law relationships for employment relationships. The desire of an economic subject to obtain benefit during entrepreneurial activity is understandable, however one should not forget about existing rules – norms, particularly tax legislation, neglect of which can lead to quite negative consequences.

Schemes applied by economic subjects are successfully prevented by tax authorities.

For example, during the inspection of LLC from Mogilev conducting real estate activities, facts of concealing revenue and paying unofficial incomes to founders and unemployed employees were established. According to the inspection results, taxes and fines totaling more than 1 million rubles were presented. In addition, a fine of 210.5 thousand rubles was imposed on the organization and its official. A criminal case was opened against the founder and official of the LLC.

A private retail enterprise from Bobruisk concealed cash revenue from sales totaling almost 1.1 million rubles, which was used to pay unofficial incomes to hired workers. As a result, taxes submitted by the payer totaled 397.4 thousand rubles, including personal income tax amounting to 226.8 thousand rubles, went to the budget.

During the inspection of wholesale LLC from Mogilev, facts of substitution of civil-law employment relationships through contracts with several controlled IPs were established. The total cost of incorrectly formalized services exceeded 130 thousand rubles. According to the inspection results, considering other violations, 37 thousand rubles in taxes, fines, and penalties were presented, which went to the budget in full.

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 workers. 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, according to the results 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. The amount charged for payment into the budget is 3.4 million rubles of personal income tax.

Once again, it should be noted that the employer's duty is to formalize labor relations officially. 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 to mandatory pension and medical insurance;
• not receive vacation pay, settlement upon dismissal;
• not receive full payment for 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, workplace accidents or occupational diseases and other life situations;
• not obtain a bank loan for purchasing housing, paying for education, treatment, etc.

Dear citizens!

Stay vigilant, do not agree to receive wages 'in envelopes'.

You can report information about cases of employers concealing the actual