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The Greek government amended the bill against tax evasion proposed just two days ago and it seems ready to abandon the punitive measures against unfair tax debtors.

The bill provided for imprisonment between four months and ten years for those who delay the payment of VAT of over 5000 euros. The threat of imprisonment looms over debtors if the VAT payment delay is more than four months. These are just some of the changes through which the government plans to tighten the belt of major taxpayers in Greece as a measure of the process to fight financial fraud and unfairness.

Proposals are offered for public discussion until the month and will become state law early the next month. There will be grace period between six and eight months, which the Ministry has defined as reasonable, for due VAT of less than € 5,000. For other overdue payments to the state after the grace period citizens will be subject to detention, fast-track trial and even imprisonment.
 
All who live or once were in Greece will make the logical conclusion from the above changes in the law, namely that there will remain no free Greeks in Greece. "Show me a Greek who does not owe any money" is the most common answer when someone asks:" Well, how did we run up to this debt?" Bad debts of the public sector reached about 36 billion euros last year, while the foreign debt of the public and private sector together amounted to 434.3 billion euros, or 187% of GDP for the first half of 2010.

Data show that Greeks as a whole due not small amounts to foreign creditors and the public sector. In a period of serious recession which the country is experiencing today the difficulties with the repayment of various obligations are common practice. Sharp change in the economic situation last year was the main reason many companies to declare bankruptcy, the main problem being the inability to repay their obligations.

While Finance Minister George Papaconstantinou is wondering how to collect more money in the Treasury, financial observers in Greece assessed that the new changes will most likely trouble honest taxpayers and the "usual suspects" will still remain beyond the sweep of tax authorities.

Things will get more serious for free employees if the proposal that everyone in this group would be seen as high-risk taxpayers and would constantly be watched by the tax authorities is accepted. The bill, which was announced yesterday by the Ministry of Finance, states that economists, accountants, business consultants, doctors, dentists, veterinarians, lawyers, engineers must declare at least between 15,000 euros and 25,000 euros a year in order not to be subject to tax inspections.

Further details to be submitted later