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Many analysts point out that the biggest problem in Greece is the tax unfairness. Is this true, and what can be done about this?
In Greece, politicians, ministers and governments generally do not want to deal with the tax unfairness, because apparently they somehow benefit from it - you can write this in capital letters. I can not say this with certainty about the present management of the Ministry of Finance because it is still new, but it will show. To date, however, those who headed the Ministry of Finance would not really deal with the problems of tax evasion, despite their great promises.
If you want to deal with a problem, you should contact the appropriate specialist to show you the characteristics of the matter and together with him to prepare an action plan. Such a thing hasn’t happened in the past 30 years. The Panhellenic Federation of Accountants and tax experts has declared its readiness to assist the government in the absorption of illegality. We have submitted a list of all measures that can practically reduce distortions, but nobody paid any attention to this. This leads us to conclude that it is deliberately ignored in order for some politician not to lose his bread. I think it's disgraceful that the Directorate of the Ministry of Finance does not want to cooperate with the Union of Accountants and tax experts on the topic of tax unfairness.
In a country like Greece, which lends money so as not to go bankrupt, fighting the tax unfairness must be first a priority. What stops the politicians to really fight it?
As I already told you it is the lack of desire. They can not establish what is the volume of tax evasion, let alone to fight them. In times of crisis, in which we presently are, we must all engage in the fight for recovery. This is the only way we can get out of the unpleasant situations in which we are into now.
What do you think are the necessary changes in tax legislation in Greece, so as to put order into the finances of the country?
First you need to take real measures to combat tax crimes for them to be substantially limited. Also, the tax burden on businesses and individuals must be reduced. Lower taxes are crucial for facilitating the collection of liabilities and it stimulates the economic development. An example for this is the experience we have from the previous government. They cut the taxes and the revenues in the Treasury increased. We can not talk about growth when we overflow the people with new, higher taxes. Especially in times of recession. There is no way for new investments to come. How will the state collect its debts, even under the threat of imprisonment, when the market is frozen, and stocks are depleted.
Last but not least it is extremely important to establish a stable long-term tax system which will not be changed every week. In the last year 12 tax laws have been voted. Every law has about 300 additional document to specify its application. You understand that we, accountants and tax experts, do not have time to read them. Until a law is adopted and enters into force, its activity has been canceled by the next one adopted by the parliament.
In summary, I want to stress that Greece needs a stable and long-term tax system with low tax rates and serious control to limit to a minimum the tax unfairness. Only then we can get back on our feet.