Greeceâs parliament has pushed through legislation that in effect grants a tax amnesty to millions of citizens, in a move at odds with organisations overseeing the countryâs bail-out.
The law will allow the government to collect about â¬2bn ($3bn) over the next two years, far short of an estimated backlog of unpaid taxes over the last decade of about â¬35bn.
The legislation has provoked sharp criticism, including from members of the governing Socialist party, which pledged when it came to power a year ago to avoid a long-standing practice by governments of agreeing across-the-board tax amnesties every three to four years.
âThe fines [in the legislation] are so small they effectively reward tax evasion . . . So owners of small businesses and self-employed professionals will go on disputing tax claims, hoping for another amnesty,â said George Florides, a Socialist former deputy minister.
The measure also goes against advice from the âtroikaâ â the European Commission, European Central Bank and the International Monetary Fund â which is monitoring Greeceâs progress in meeting targets to reduce its fiscal deficit.
Officials from the three bodies have warned Greece that one-off measures will not solve the countryâs revenue problems, according to people familiar with the discussions.
http://www.ft.com/cms/s/0/a85d7edc-ccd2-11df-a1eb-00144feab49a.html
Unbelievable. I think I have to sell some Euros...
The law will allow the government to collect about â¬2bn ($3bn) over the next two years, far short of an estimated backlog of unpaid taxes over the last decade of about â¬35bn.
The legislation has provoked sharp criticism, including from members of the governing Socialist party, which pledged when it came to power a year ago to avoid a long-standing practice by governments of agreeing across-the-board tax amnesties every three to four years.
âThe fines [in the legislation] are so small they effectively reward tax evasion . . . So owners of small businesses and self-employed professionals will go on disputing tax claims, hoping for another amnesty,â said George Florides, a Socialist former deputy minister.
The measure also goes against advice from the âtroikaâ â the European Commission, European Central Bank and the International Monetary Fund â which is monitoring Greeceâs progress in meeting targets to reduce its fiscal deficit.
Officials from the three bodies have warned Greece that one-off measures will not solve the countryâs revenue problems, according to people familiar with the discussions.
http://www.ft.com/cms/s/0/a85d7edc-ccd2-11df-a1eb-00144feab49a.html
Unbelievable. I think I have to sell some Euros...
