The Best of GRReporter
flag_bg flag_gr flag_gb

Greece looses € 13 billion per year from tax evasion

14 December 2011 / 16:12:05  GRReporter
7097 reads

Example: The local merchant of agricultural products, who usually is a member of an informal cartel of merchants in the region goes to the farmer and wants to buy the lemons produced by him. I will give you 15 cents per kilogram. It is not enough. Because I am good, I will give you 20 cents, but you will write on the invoice that you sold them for 50 cents per kilogram. The farmer receives less money, but he expects to benefit from funding, double weights and return of VAT and therefore, he benefits from this transaction. The merchant delivers the goods to wholesalers for 60 cents per kilogram. They sell the lemons to retailers for 80 cents, and they, in turn, offer them to consumers for €1.20. The next day, all the TV stations are at the farmer’s fields, asking him why the price of lemons is so high. And he, visibly angry and surprised, replies that he has no idea, because he sold them for 20 cents. Of course, the big profit is in the hands of the merchant, who has legal invoices and a very high profit and does not worry about taxes. This whole system is based on the fact that farmers are not obliged to keep accounting books."

All experts stressed the necessity of changing the tax system so that no audits are needed and tax evasion is impossible from the outset.

 

Tags: EconomySocietyTax evasionCorruptionTax offices
SUPPORT US!
GRReporter’s content is brought to you for free 7 days a week by a team of highly professional journalists, translators, photographers, operators, software developers, designers. If you like and follow our work, consider whether you could support us financially with an amount at your choice.
Subscription
You can support us only once as well.
blog comments powered by Disqus