Greece Gets Creative To Catch Tax Evaders

Greek tax inspectors have been staking out island resorts and rock concerts in order to track tax evaders for unpaid fines and assets, said a report by Reuters on Thursday, as the government steps up efforts to raise extra tax revenues in order to plug the nation’s gaping budget deficit.

Greek tax inspectors have been staking out island resorts and rock concerts in order to track tax evaders for unpaid fines and assets, said a report by Reuters on Thursday, as the government steps up efforts to raise extra tax revenues in order to plug the nation’s gaping budget deficit.

During a recent concert in Athens by U.S. rock group the Red Hot Chili Peppers, tax inspectors were on hand to fine tax evaders up to 5,000 euros each for not offering receipts on sales.

The Greek tax inspectors also visited the island resort of Hydra last month to find evidence of businesses not recording sales in order to lower their income taxes, while the government also announced the unprecedented step of freezing the bank accounts of 121 tax evasion cases – worth more than 50 million euros collectively.

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[quote]“Tolerance of tax evaders, no matter how high up they are, is over,” told Finance Minister Yannis Stournaras in an emailed statement to Bloomberg.[/quote]

According to a study by the European Union late last year, Greece has yet to collect about 60 billion euros ($77.52 billion) in unpaid taxes. The Greek finance ministry added that as many as 80 percent of inspected establishments on places like Crete, Corfu and Santorini were found in violation of tax laws.

For the moment at least, Greece’s Financial Crime Squad will continue freezing assets of suspected tax evaders. This includes luxurious properties and shares listed on the Athens and New York stock exchanges as assets tied to tax evasion.

On Friday, officials from Greece’s troika of lenders – the European Commission, European Central Bank and International Monetary Fund – will also be in Athens to evaluate Greece’s progress in meeting its budget and economic reform targets.

The troika have in the past offered to help Greece collect taxes and recently also suggested other methods, such as introducing a six-day workweek, in order to boost government revenue.

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