Greek central banker calls for tougher crackdown on tax evasion

Calling for a comprehensive action plan to tackle burgeoning tax evasion, Greek Central Bank Governor Yannis Stournaras on Tuesday warned that the size of the shadow economy is estimated at nearly 21% of gross domestic product.

Speaking at the 19th edition of the Tax Forum in Athens, Stournaras stressed that even though the exact size of the informal economy is hard to assess, several surveys point to a problem that is bigger than in other countries. For example, he said, Greece has the fourth highest VAT gap in the European Union, equal to 19.7% of total VAT (or 3 billion euros). 

Stournaras said that tax evasion appears to be more prolific among self-employed professionals and very small enterprises.

He went on to recommend six measures for dealing with the problem: expanding the use of electronic transactions and the use of POS, offering incentives for payments with debit cards and through banks, offering incentives in the form of tax exemptions to reveal transactions in sectors with high evasion, upgrading the electronic tools of the Independent Authority for Public Revenue, simplifying the tax system and intensifying efforts to cultivate a responsible tax culture.