Andorra's Cinca Presents Indirect Tax Compliance Figures
by Ulrika Lomas, Lowtax.net, Brussels
10 February, 2014
Following a recent Council of Minister's meeting, Andorran Finance Minister Jordi Cinca took stock of the level of corporate compliance with the requirement to file general indirect tax (IGI) returns.
January 31 was the deadline for filing monthly, quarterly, and six monthly IGI returns. According to Finance Minister Cinca, a total of 5,216 IGI declarations were submitted, of an anticipated total of 5,520, representing a rate of compliance of 94.5 percent.
Breaking this figure down, the number of monthly IGI declarations presented rose to 314 in December, significantly higher than the 215 recorded in January. This is due to the fact that newly established enterprises are required to submit monthly declarations during the first year.
Finance Minister Cinca revealed that 1,595 IGI declarations were submitted in the fourth quarter of 2013, noting that this figure is expected to rise in the next few days. Given that the Finance Ministry expected to receive around 1,660 declarations, the actual figure shows a level of compliance of 96.08 percent.
Declarations relating to the second half of 2013 stood at 3,307, representing 91.8 percent of the expected total of 3,600. By way of comparison, the number of IGI declarations for the first half of 2013 reached 3,147.
Furthermore, Finance Minister Cinca announced growth in the number of returns submitted via the Internet. Cinca observed that 58 percent of IGI declarations were presented in person, while 42 percent were filed online.
Concluding, Finance Minister Cinca emphasized that the statistics are evidence of the awareness of taxpayers in Andorra to fulfil their tax obligations, and demonstrate that the tax system is now well established. Cinca nevertheless reiterated the importance of staggering the submission of IGI returns.
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