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Companies report growing troubles with getting government to refund overpayments for value-added tax. They also say they are being strong-armed to buy state bonds and pay income taxes in advance, are being subjected to incessant checks and have problems carrying forward losses from previous years. 

Tomas Fiala, president of the European Business Association and head of investment bank Dragon Capital, said the Tax Service continues its unlawful practice of not allowing companies to balance current profits against losses incurred in previous years, a common international accounting practice. He added VAT refunds are also paid late, only after companies pay other taxes in advance or buy state bonds.   

A  European Business Association study in May covering 117 companies showed that 77 percent reported demands by tax authorities to pay income taxes in advance. Half said they often received groundless information requests. Frequent inspections were also seen as a means of pressuring firms, 79 percent of which reported one to seven inspections in 2011. 

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