Financial Crime World

Slovakia’s Financial Institutions Boost Security Measures

The Financial Administration of Slovakia has undergone significant changes since its founding in 2012, aiming to become a modern and client-focused institution. The administration has successfully launched various projects aimed at improving tax and duty collection efficiency, fighting fraud, and supporting clients.

Exceptional Performance in Tax Collection

The Financial Administration’s most notable achievement is its exceptional performance in collecting taxes and duties. In recent years, the institution has managed to increase state budget revenue by approximately EUR 3.7 billion, reducing the tax gap from 41% to 26%.

  • Reduced tax gap from 41% to 26%
  • Increased state budget revenue by EUR 3.7 billion

Enhanced Security Measures

To enhance security measures, the Financial Administration replaced its outdated information system with a new one, which provides more security and disables retrospective changes in data.

  • New integrated information system for tax administration
  • Improved security features to prevent data tampering

The institution has also extended its electronisation efforts to the customs area, introducing an electronic customs clearance system and achieving a rate of 99.7% of customs declarations filed electronically by the end of 2017.

Electronisation Efforts

The Financial Administration has launched various electronisation initiatives, including:

  • Electronic customs clearance system
  • Online portal for taxpayers to manage tax and customs-related matters
  • Over half a million taxpayers communicating with the institution via electronic means

Fighting Tax Fraud

The Financial Administration has made significant strides in fighting tax fraud by implementing various measures, including:

  • Introduction of the VAT ledger statement
  • Establishment of the Tax Cobra, a cross-institutional team working with law enforcement agencies to combat fraud

International Cooperation

The institution has developed active cooperation with EU Member States, OECD countries, and the USA, including the exchange of information on taxable entities.

  • Automated information exchange for improved tax collection efficiency
  • Elimination of cross-border tax transfers as a means of tax evasion

Public Recognition

The Financial Administration’s efforts have been recognized by the public, with the institution being praised as the best-communicating state institution in Slovakia in 2013. The institution has also become the first state institution to use social networks, with over 60,000 entities communicating with it via its Facebook page.

Conclusion

The Financial Administration of Slovakia’s efforts have resulted in significant improvements in tax and duty collection efficiency, fighting fraud, and supporting clients. The institution’s commitment to enhancing security measures and electronisation has paid off, and its international cooperation has helped to improve tax collection efficiency and eliminate cross-border tax transfers as a means of tax evasion.