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The government of George Papandreou expects to receive three billion from the amnesty measure for unpaid taxes. The money is expected to enter the state treasury in stages by the end of 2010 and 2011. Large and small companies will be entitled to settle their old tax liabilities by paying a percentage of the due tax amount and to start the next fiscal year anew. The details of the tax amnesty are not formally presented yet, but according to information in the Greek media, tens of thousands of companies and freelancers with unpaid tax amounts for the years between 2000 and 2009 will be able to benefit from it.

The Financial Minister George Papakonstantinou will have a series of meetings by the end of the week with professional associations and chambers in the country to discuss the details of the tax amnesty. To effect the new measure, the government will submit the new draft to the Parliament to vote it by the end of September. The amount of payment will be calculated as gross income multiplied by a factor of between 1% to 3%. 20% of the formed amount will be paid as VAT. Its value can not be less than 200 to 100 euros depending on the volume of turnover of the specific company. According to initial information, the Financial Ministry is considering the amount due, which will simplify the remaining unpaid taxes, to be paid in up to 24 months installments. If deferred payment comes into force, the government will collect the estimated three billion euros by the end of 2012.

It is expected to become clear by the end of the week whether the tax amnesty will apply only to enterprises with a turnover of € 20 million or to all companies and sole proprietors having tax liabilities for the specified period. According to unconfirmed information from the government, the measure will not apply to financial companies in the country, such as banks, insurance companies and large companies listed on the Athens Stock Exchange. Companies and sole proprietors that have applied alone for amnesty in the fiscal 2008 will not be able to benefit from this year's amnesty either.

According to sources from the Ministry of Finance, the members of the expert Troika of the International Monetary Fund, the European Central Bank and the European Commission approved the government proposal. Greece is still experiencing difficulties with the collection of the budgeted revenue and the Financial Ministry is trying to fill the gaps through new measures. However, the members of the Troika reported that the amnesty on tax liabilities will not bring more than two billion euros, which is significantly less than the expectations of the Greek government.