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A retroactive tax on deposits abroad

06 August 2011 / 15:08:33  GRReporter
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The five-year Strategic Plan prepared by the Government for 2011-2015 for the Greek tax authorities provides for a retroactive tax on deposits abroad, which do not correspond to the declared income of their owners, the gradual approximation to the objective evaluation of the property to its market price, the price unification of heating fuel with that of petrol along wih the parallel subsidizing of the costs for consumers and other regulations to combat tax evasion as well as reorganization of the tax services.

The measures also include disclosure of lists of names of major debtors, concealed their income, having overdue debts for more than 150,000 euros, determining  determining using air photos of taxpayers who have not declared their swimming pools, and the merger or closure of at least 180 tax offices, a large part of the staff will be transferred to the larger tax offices. Also many of the standard services for taxpayers will be transferred from the tax services to the Public service Centers.

The plan was approved by the Vice Prime Minister and Minister of Finance Evangelos Venizelos and was made public yesterday.

As the Minister of Finance stated in his message "along with the National Operational Programme against the concealing of income, announced in May and the new tax system which we will introduce in September, this is a complete tax reform, which fundamentally changes the relationship of citizens and businesses with tax authorities and provides a fair, efficient and progressive tax framework."

In particular, the measures provided for in the Strategic Plan for the Greek tax administration are the following:

* Implementation of the intensive program of collection of overdue debts by major debtors, through innovative methods of targeting and forcible collection.

* Acceleration of the implementation of the reforms introduced by the new tax law.

* Provision of better compliance with the tax legislation and more effective verifications of 1,000 of the largest companies.

* Control against income concealing by individuals and those employed in the free professions with high incomes, through actions to enforce the tax laws, based on risk analysis and penalties for significant violations.

* The creation of a centrally managed system for inspections and actions to enforce tax compliance by taxpayers.

* Full mobilization of new business units created in the General Directorate "tax inspections" to analyze the risk.

* Use the new service of auditors, which is created with the requirement for special qualities and performance contracts.

* Develop an annual inspection program, which will include a mix of methods, including inspections in offices, verifications on specific issues, in-depth general inspections and targeted research based on risk.

* Completion and summarizing of the implementation of the software system for selection and management of the ELENXIS cases, as well as of the associated systems for operational support.

* Creation of a continuous program for professional development of the inspection staff.

* Enabling the tax administration to implement internationally recognized methods for direct control and statistical determination of the confirmed taxes for individuals failed to file tax returns.

* Use of the new possibilities for the abstraction of information from the banking system and cross-checking of data using appropriate information systems.

* Strengthening the capacity of the staff in the tax services by renewing and increasing the number of employees.

* Increased preventive controls and visible patrols to prevent illegal conduct.

* Increase of the speed and rate of response to signals from the citizens.

* Development of common operational plans with the new service to control economic crimes of the Greek police, port authorities, customs, municipal police, etc for a determined control of illegal trade.

* A new method for labeling of cigarettes and alcohol, installation of systems to measure incoming and outgoing fuels from the petrol stations, and mobilizing the tax service patrols at the sea.

* Implementation of systems for photographing from the air in order to locate undeclared pools and luxury homes.

* Gradual unification of the price of heating fuel with that of petrol with parallel subsidizing of costs for consumers.

* Establishing of cases of 'conspicuous consumption', ie individuals who have a luxurious lifestyle not corresponding to the taxes paid by them.

* Increase of the number of international treaties for the exchange of tax information, including special agreements with countries hosting bank deposits (Switzerland, Liechtenstein, etc.)..

* Gradual approximation of the objective assessment of the property to the market price.

* Restructuring of the services that are mobilized in cases of forcible collection of overdue payments on a central and regional level.

* Speed ​​mobilization of the new structure of auditors for compulsory collection of duties, which are selected on the basis of special skills and knowledge.

* Intensive training courses for auditors for the forcible collection of debts.

* Use of external consultants who will work in close cooperation with the tax services to find the debtors' assets to secure the claims of the state.

* Regular reporting of large borrowers with overdue debts exceeding 150,000 euro as provided in the new regulations.

* Activation of the regulations for the temporary detention of persons concealing their income to a large extent.

* Creation of a system for statistical monitoring of the results of the new judicial procedures.

* Systematic publication of the names of major offenders.

Tags: tax legislation income concealing control Ministry of finance
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