Area: Finance
Competent authority: MF
EZU URL: .nan
Initiative ID: 15
Initiative accepted and completed: '2012-01-20'
Initiative classified in EZU: .nan
Initiative forwarded in response: '2012-01-06'
Initiative published: '2012-01-06'
Initiative submitted: '2011-12-24'
Response from the competent authority: With regard to the administrative relief initiative
  (Initiative No 15 of 6.1.2012), received by the Ministry of Finance via the Ministry
  of Finance's "minus 25%" portal, which concerns the proposal to introduce a flat-rate
  tax on small businesses, restaurants, shops up to 100 square metres, etc., the Ministry
  of Finance is proposing to introduce a flat-rate tax on small businesses, restaurants,
  shops up to 100 square metres, etc. The current tax legislation on the taxation
  of the income of economic operators is based on the fundamental principle that economic
  operators are taxed according to their economic strength. This means that the tax
  liability is determined on the basis of the actually ascertained income (effective
  tax base) of each taxable person. Flat-rate taxation is not based on the actual
  tax base, but on an assumed, probable tax base, which in principle acts as a proxy
  for the actual tax base. This means that the actual tax base is not ascertained,
  but its extent is inferred on the basis of simple indicators (based on indirect
  methods), as these simple indicators are supposed to be easier to measure than the
  actual tax base.The introduction of flat-rate taxation is also often argued on the
  basis of the administrative complexity of bookkeeping. It should be stressed that
  the obligation to keep proper records of business operations (keeping books of account,
  drawing up annual reports) is not established solely for the purpose of establishing
  or determining tax liabilities. The tax base is determined on the basis of the income
  and expenses that the taxpayer identifies in the profit and loss account, which
  it draws up on the basis of the provisions of the Companies Act (ZGD-1), which also
  implements the provisions of the European Union's accounting directives. This means
  that, even in a flat-rate system, the provisions of the CGD-1 and the accounting
  standards would still require taxpayers to keep accounts and draw up annual reports
  and would not reduce the administrative work involved in taxing their income. It
  should also be noted that the information contained in the accounts is also relevant
  for other, non-tax purposes, such as public reporting, statistical purposes, information
  to owners, obtaining sources of finance (new capital, credit), etc. Last but not
  least, the importance and benefits of correct and transparent monitoring for the
  business entity itself (for making appropriate decisions at the management level
  and at other levels in the company) must also be taken into account.In conclusion,
  we would like to stress that when deciding on a flat-rate taxation, it is necessary
  to consider and take into account all the aspects that are affected by the flat-rate
  taxation, such as respect for the principle of equality, redistribution of the economic
  entity's disposable income, public revenue, etc. Flat-rate taxation may be more
  favourable for some taxpayers and less favourable for others than taxation on the
  basis of actual income. This in turn may mean that the tax is collected illegitimately.
Text file: 15.txt
Title: Proposal to introduce a flat-rate tax on small businesses
URL: https://www.stopbirokraciji.gov.si/pobuda/?st=15
