Government crackdown on tax evasion in Cuba sees jail terms for the self employed

17th March 2017

When most people picture Cuba, the image of idyllic beaches and cigars may spring to mind. But for those considering working, or placing professionals, in the country, ensuring compliance should be front of mind. With recent reports suggesting that 223 cases of tax evasion by self-employed people are currently going through the courts, it’s perhaps more important than ever to ensure you are on the right side of the law.

Jail terms for tax evasion

In bid to reclaim lost revenue, The National Tax Administration Office of Cuba (ONAT) has already handed out hefty jail sentences – ranging from two to five years – to self-employed workers for tax evasion. According to reports, the main offences range from reporting monthly income below real monthly income and failing to file a tax return to under-declaration of income at the end of the fiscal year.

And in a move which reinforces Cuba’s tough stance on tax evasion, even professionals who pay their tax debts can still land themselves in jail because the penal process against them doesn’t simply end. As a case in point, 4 million pesos has already been collected to pay off debts within just one of Havana’s municipalities but the individuals involved must still appear before the courts who will determine if a jail sentence will also be imposed.

Remaining compliant in Cuba

Whether you’re a recruitment company placing professionals, or are a contractor considering a move to the country, remaining compliant needs to be a priority.  However navigating complex legislation can be a minefield, particularly at a time when regulations are changing at a rapid rate. It’s wise, therefore, to seek out the advice of a reputable company that can help. Why not get in touch with us today to find out how we can ensure you stay on the right side of employment laws?

 Live chat with one of our expert staff

Like our LinkedIn page

Follow us on Twitter

Get in touch on Facebook

Contact Us