Massive Tax Evasion Scheme Uncovered by Cuba’s National Tax Administration Office
800 Million Pesos in Undeclared Taxes Revealed
In a recent statement, Belkis Pino Hernandez, the first deputy chief of Cuba’s National Tax Administration Office (ONAT), revealed that the agency has detected a massive tax evasion scheme exceeding 800 million pesos in just four months this year. According to ONAT, approximately 80,852 control actions were conducted during the initial four months of the year, resulting in debts totaling 819 million 594 thousand pesos.
Breakdown of Tax Evasion Cases
- Natural Persons: The majority of alleged tax evasion cases (207) involve natural persons.
- Entities: Only three tax evasion cases relate to entities.
- Case Status:
- Closed: 30 cases have been closed after debtors paid their dues.
- Proceeding Legally: 117 cases are proceeding legally.
- Unresolved: 63 cases remain unresolved.
Methods of Tax Evasion
The detected irregularities include:
- Updating, manipulation, or alteration of books, records, sub-ledgers, and other models
- Cancellation of accounts receivable without documentary support
- Non-declaration of hired labor
ONAT’s Response
To combat these “fraudulent actions”, ONAT has taken a range of measures, including:
- Withdrawal of authorization
- Embargoes
- Travel restrictions
However, no specific data on the number of such measures was provided by officials.
Experts’ Concerns
Experts from ONAT’s legal department, such as Judith Navarro Ricardo, have emphasized that tax evasion poses a significant threat to Cuba’s economy and its citizens. The authorities are working to strengthen tax collection mechanisms and prevent future cases of tax evasion.
Frequently Asked Questions (FAQs)
Q: What were the primary methods of tax evasion detected by ONAT? A: Updating, manipulation, or alteration of books, records, sub-ledgers, and other models, cancellation of accounts receivable without documentary support, and non-declaration of hired labor.
Q: How did ONAT respond to the detected tax evasion cases? A: ONAT’s response included a significant number of authorization withdrawals, embargoes, and travel restrictions.
Q: How many reports of alleged tax evasion were filed in the first four months of 2023? A: A total of 210 reports were filed, with 207 involving natural persons and three related to entities.