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Employers will be punished for a salary in envelopes

May 31 2006

Moscow Mayor Yuri Luzhkov called for tougher penalties for the payment of wages in envelopes.

According to him, the main source of income the city's budget is replenished by a tax on individuals and the income tax, and therefore can not allow the issuance of salary in envelopes, while real wages and, consequently, the taxes are hidden from the state.

He said that heads of enterprises and organizations that admit such a scheme of calculations needed to be punished severely, according to "News".

"We need to extend the jurisprudence of the impact on evasion and the hidden tax or advance payments," - said Luzhkov at a meeting of city government.

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