Owners of bars and other establishments in the Bulgarian Black Sea southern coastal resort of Lozenets who were systematically evading taxes, could be facing jail, television channel bTV said on August 23 2010.

Officers from the National Revenue Agency and the Bourgas police carried out a raid on August 22, seizing software, tills, and other equipment. Allegedly, it was found that there was a discrepancy of more than 200 000 leva between actual turnover and the sum that had been declared to tax authorities.

The establishments were not named in the report.

Last week, the NRA reported massive discrepancies and widespread and systematic tax evasion among certain bars, discos and nightclubs in Varna, Bulgaria's largest Black Sea city.

When a number of such establishments in Varna were investigated, it transpired that their daily turnover "suddenly increased" six to 14 times, reports said.

A nightclub, unidentified in the report, had declared a 280 leva daily turnover, prior to the check-up, but when investigated, it was unveiled that they made more than 4000 leva in one night.

Because of the large scale tax evasion, all clubs, bars and discos have been ordered to turn over all receipts and documentation listing all transactions, orders and supplies over the course of the past three years, while some of the most "prominent" clubs will have to provide the necessary documentation for the past five years, the report said.

Once their accounts are revised, they will be taxed and sanctioned accordingly.