The MEP Elena Yoncheva finally lost the case she brought against the revision act of August 2021. This shows a check in the case registers. In addition, she was sentenced to pay nearly BGN 4,500 for the revenue agency’s costs before the Supreme Administrative Court and just over BGN 7,000 for the first instance.
The tax authorities seek Yoncheva’s responsibility by virtue of a text from the Tax and Insurance Procedural Code, which states that whoever, in his capacity as a manager of an obligated legal entity, conceals facts and circumstances that he was legally obliged to declare to the revenue authority or the public contractor and, as a result, tax and/or social security obligations cannot be collected, is responsible for the unpaid obligation. For Yoncheva herself, obligations have been established due to her liability under the Civil Code as a manager of the company in the amount of BGN 57,965 – principal BGN 36,025 and BGN 21,939 interest.
It is about obligations of “Offroad” Ltd., of which Yoncheva was the manager. According to the tax authorities, the company owes corporate tax as well as health insurance contributions and this was established by a revision act in 2020.
In April 2017, Yoncheva was removed as manager, but no other representative was elected in her place. Subsequently, the Sofia City Court appointed a liquidator of the company. In the course of the audit, it was established that “Offroad” OOD had no employed persons under employment and/or equivalent legal relationships. According to the contract for management and control, Yoncheva received BGN 14,300 in remuneration every month. Every year, with the exception of 2014, has been declared accounting and tax losses.
Receipts on the accounts of “Offroad” OOD in KTB in leva and in euros were found, made a few days before and two days after the company’s registration. The amounts were transferred by the partner “Daly Trading Limited” (Virgin Islands).
“Offroad” Ltd. has declared accounting losses that are not covered by the cash received, the tax authorities explain. Additionally, it was established that in 2012, 2013 and 2014 sums of the received funds were personally withdrawn from the cash register by Yoncheva (BGN 174,654), and there are no documents for their use for the company’s activities. Therefore, the National Revenue Agency concludes that this money is hidden income. Thus, a smaller tax base is declared and a smaller tax is charged. This is how the corporate tax due is calculated in the amount of nearly BGN 34,000 plus interest.
According to the auditors, Yoncheva hid the actual financial result of the company. That is why a revision act was issued to her.
The public liabilities of “Offroad” amount to BGN 183,942 – BGN 126,940 principal and BGN 57,002 interest, calculated as of January 25, 2021. The debt is categorized as uncollectible.
The court does not accept Yoncheva’s argument that she cannot be held responsible, since at the time of establishing the obligations of “Offroad” OOD, she was no longer its manager.
“This objection would have been relevant if the new manager of the company had been appointed and entered in the Commercial Register before or during the revised period. Yoncheva was the manager and representative until June 4, 2017, i.e. until that date she carries full responsibility for the commercial affairs of the legal entity,” the court decision said.
