Analogous to the flight data recorder aboard an aircraft, the box records two types of information: the hours worked by each member of a restaurant’s personnel and all financial transactions. The box – in fact a software application – cannot be tampered with and will be available to inspectors for checks on working hours and tax declarations.

The catering industry is recognised as being one of the worst offenders in both tax evasion and employing illegal staff. Restaurant owners regularly take cash payments that never pass through the books. The industry is also a centre of underground economy, with staff working either entirely or partly undeclared hours, allowing them to escape taxation, while their employers escape social security charges. According to some estimates, 54% of hours worked in the industry are undeclared, and up to 30% of total income is undeclared.

The government’s agreement to cut VAT on restaurant meals from 21% to 12% from January was linked to a serious plan to tackle these two problems. The restaurant industry is likely to benefit more than customers from the VAT cut, as most owners have said that saving will only be passed on to customers in small part, if at all. Some industry representatives have warned, on the contrary, that the fight against tax fraud will impose up to 20% extra costs on owners, which could lead to higher prices in restaurants.