25.05.09

The most noteworthy is the campaign to draw "grey" (under the table) salaries into the light. In 2008, at commission meetings Moscow Tax Authorities inspected and analyzed 16,600 organizations that pay salaries below industry averages. 97.1% agreed to increase salaries, and among them 88.8% were willing to increase salaries up to the average industry level.

In the first quarter of 2009, 10,200 low-paying organizations were analyzed, but only 55.9% agreed to increase salaries, and only 48.2% of those were willing to increase them to the average industry level.

One tax officer blames it on the crisis: many companies are forced to lower salaries, and others take a risk and keep salaries "under the table." Grey salary schemes are most prevalent in companies working with cash funds, i.e. in trade and service companies.

According to FNS, the most common method used to avoid the Unified Social Tax is to pay "in an envelope" – i.e. a portion of the salary is delivered in cash and not reflected in the books at all. Other clever methods include using tax privileges meant to assist disabled persons to the company’s advantage, redeeming annuities on life insurance contracts, and personnel leasing schemes. 

Translated by Alinga Consulting Group.

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Source: Vedomosti