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Taxman’s Red Hot Clampdown
The Greek government looked to be doing its best to clamp down on tax evaders when taxmen targeted unauthorised merchandise sellers at the
Street traders pushing such paraphernalia as hats, light sticks and flags were fined up to euro 5,000 ($6,300) each, according to a government press release on tax evasion.
“There will be no more tolerance for tax evasion,” said finance minister Yannis Stournaras in another statement revealing that the taxman has cash, houses and some expensive cars previously owned by accused tax evaders.
It was recently estimated that tax cheats cost the Greek government $14 billion each year.
Greek residents have again shown their distaste for some of their government’s austerity tactics, and last month some angry restaurant owners chased tax inspectors through the streets of Hydra.
Tax inspectors have been targeting popular tourist spots such as Hydra, a small island with about 2,700 inhabitants.
“We have no work at all and they come here to arrest us,” a local bar owner told Global Tax News, after he and his neighbours had thrown stones at the tax inspectors – who’d been sent from the mainland – and chased them back to the harbour.
Reuters says the finance ministry reckons that as many 80 percent of the businesses it inspected on places like Crete, Corfu and Santorini were found in violation of tax laws. It seems that very few of the local traders are compliant with VAT.
Greece is trying to rake in unpaid taxes to plug its huge budget hole and meet its financial responsibilities.
It’s also trying to hike taxes and cut public spending to help calm the Euro countries, which are worried by the burden of Greek debt and its ability to repay it.
The statements detailing the taxman’s successes came days before inspectors from the European Union and the International Monetary Fund were to fly to Athens to check on the country’s progress toward meeting its economic targets.