ELECTRONIC SALES SUPPRESSION: A THREAT TO TAX REVENUES

26 – GOVERNMENT RESPONSES
The Dutch tax administration and the manufacturers participate in this project, on a
voluntary basis. The project is now operational, has the support of many manufacturers;
and the Quality Mark organisation functions as a fully independent group. The idea is that
cash registers systems that comply with the standards will obtain a Quality Mark label.
The Quality Mark body sets standards to which a reliable system should comply and
monitors that manufacturers keep to the standards (and correctly use the Quality Mark
label).
Source: www.keurmerkafrekensystemen.nl
Figure 3. Quality Mark introduced in the Netherlands
The Dutch tax administration will take into account within its risk management
system for audits that quality marked systems represent a lower risk regarding fraud.
Raise awareness
Raising the awareness of the impact of electronic sales suppression in a planned and
stepped manner can be beneficial. Sometimes the awareness-raising can be assisted or
even initiated by the media and investigative journalists as has been the case in Canada,
the Netherlands and Norway.
Tax administrations may want to consider establishing a series of dialogues with key
stakeholders, such as manufacturers, suppliers and business sector representatives.
Through dialogue, they can ensure the stakeholders understand:
• how legislation applies to the hardware and software they use;
• what the government expects of their behaviour in this matter;
• how they can comply with the legal requirements; and
• the possible results of non-compliance.
When the focus for awareness is on the end-user, the dialogue can specifically address:
• the accounting and legal requirements for maintaining books and records;
• the use of cash register systems and how it complies with these laws; and
• the benefits of compliance for both sides (win-win): providing entrepreneurs with
up-to-date business information and providing tax authorities with both the
knowledge about the systems used and ensuring the taxpayer is “lower” risk (and so
keeping audit capacity free for “higher” risks).
The communication tools used in this approach may be specific leaflets about the use
of cash register systems, specific web pages on the official website of the tax
administration and more targeted awareness campaigns.
ELECTRONIC SALES SUPPRESSION: A THREAT TO TAX REVENUES © OECD 2013