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EU law is encouraging fraudulent tax practices in Poland, leads Dziennik Gazeta Prawna. This follows revelations that a company from Małopolskie province extorted more than ZŁ60m (EUR15m) from the state budget in VAT refunds, after having reported the fake purchase of 250,000 light bulbs. According to estimates by the European Commission, member States lose more than EUR100bn annually to such practices. The pan-EU nature of the phenomenon is evidenced by the fact that the Małopolskie based company co-operated with firms from the Czech Republic, Slovakia, Austria and Germany. The Warsaw daily writes that the only solution to VAT fraud is a unification of EU tax systems or the establishment of an EU tax police.
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