During an inspection conducted in connection with the termination of activities of an individual entrepreneur from Bobruisk, facts of paying wages "in an envelope" to unregistered workers were discovered.

When the inspection of the Ministry of Taxes and Duties in Bobruisk conducted an on-site inspection in connection with the termination of activities of an individual entrepreneur who had been engaged in cargo road transport with tax payments in the standard procedure since 2023, based on the analysis and evaluation of the circumstances established and the evidence collected during the inspection, facts of paying wages to 2 workers in 2022-2024, with whom labor relations were not formalized, without reflecting the paid income in the accounting, were discovered, which led to a distortion of information about taxable objects that the taxpayer is required to reflect in tax accounting, tax returns, and calculations, the main purpose of which is to avoid paying taxes in full.

In accordance with paragraphs 4 and 5 of Article 33 of the Tax Code of the Republic of Belarus, the inspection made adjustments to the tax base and the amount of personal income tax.

The involvement of a worker by an individual entrepreneur in entrepreneurial activities without concluding a labor or civil contract with them is considered illegal and prohibited entrepreneurial activity, for which Part 3 of Article 13.3 of the Administrative Code of the Republic of Belarus provides for administrative liability in the form of a fine with confiscation of up to 100% of the income received from such activities, or without confiscation.

In accordance with the provisions of Articles 214 and 199 of the Tax Code, a higher rate of personal income tax payable by the individual entrepreneur is established for income from activities that are illegal and/or prohibited, in the amount of 26% instead of the standard rate of 20%. At the same time, the tax base for personal income tax is determined without applying tax deductions and expenses provided for in Article 205 of the Tax Code.

The fact of the individual entrepreneur's illegal and prohibited entrepreneurial activities has been recorded in the ruling of the Economic Court of Mogilev Region.

Taking into account the above, the inspection applied a personal income tax rate of 26% to the individual entrepreneur's income received from illegal and prohibited entrepreneurial activities and excluded expenses related to the income from such activities.

The taxes amounting to 13.3 thousand rubles, which were claimed for payment to the budget as a result of the inspection, were received by the budget in full.