Illegal Aliens Make Govt. Big Rubles
More than 160,000 employers were fined a total of 4.5 billion rubles for employing illegal migrant workers in Russia in 2007, according to Konstantin Romodanovsky, director of the Federal Migration Service. That sum is close to the property taxes paid by individuals (5.5 billion rubles in 2006), and can practically be considered a new tax on small business. The migration service contributed a total of about 10 billion rubles to the federal budget last year.
Until new legislation came into force last year, the fine for employing illegal aliens, in any quantity, was 8000 rubles. Now the fine is about 90,000 rubles per worker. Most illegal employment occurs in Moscow and St. Petersburg. They are followed by Moscow Region, Maritime Territory and Sverdlovsk Region in number of violations.
Observers say there is a trade-off of reduced expenses (taxes, benefits, registration) for greater risk when employing a worker illegally. In spite of recent simplifications, it is difficult for a migrant worker to attain legal status, therefore, they too are tempted by illegal employment arrangements. The situation also creates a risk of corrupt practices.
www.kommersant.com
All the Article in Russian as of Jan. 24, 2008
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