Sample Cases of Taxation of Personal Income

Case 1: Undeclared income from online sales. Gergana is a freelancer who provides web design services. She receives payments from her clients through online platforms, payment systems and other electronic systems. Although Gergana is obliged to declare her income for tax purposes, she decides not to declare part of the amounts she has received. This is considered a tax violation, since all income must be declared and the taxes on it must be assessed and paid in accordance with the law.

Case 2: Petar runs a small business in the field of consulting services. In order to reduce his tax liabilities, he decides to include fictitious expenses in the company's accounts, such as conspicuously high amounts for business travel, meals or office equipment. This type of reporting of improper expenses constitutes a tax violation and may come to the attention of the tax authorities.

Case 3: Concealing rental income. Ivan owns several properties that he rents out, but decides not to declare this income in his tax returns. This type of concealment of rental income is also considered a tax violation. The law requires the declaration of all rental income and the payment of the corresponding taxes on it. These cases, as well as others, such as trading in financial instruments, cryptocurrencies, and sales via courier, serve to illustrate the various ways in which individuals and legal entities can commit tax violations. Each case is unique and contains details that may be used when the tax authorities examine the situation.