‘Better off without checks’
Most freelance professionals would rather pay more tax than undergo extensive inspections
One in two freelance professionals who have already submitted their return are taxed based on the minimum presumptive income.
Few of them have questioned the new way of taxation, in order to avoid the inspection by the tax office which not only reaches back five years, but also checks other accounts, even those of their relatives.
As mentioned by Finance Ministry officials, the little interest registered in questioning the new way of taxation is due to two reasons: First and foremost, most people do not want the tax authorities to start looking into them and their families, and, secondly, many are waiting for the decision of the Council of State to declare the law unconstitutional and also for the verdict on the challenge procedure. That is, they prefer to pay 1,000 euros more, as they note, than to be checked.
On the other hand, the professionals who have appealed to the Supreme Court give a completely different explanation. They emphasize to Kathimerini that “we will not legitimize the decision by [Independent Authority for Public Revenue chief Giorgos] Pitsilis, proceeding to question the arbitrarily assessed income. The fewer we are, the stronger the message we send to justice about the unconstitutionality of the law as a whole,” while pointing out that the law must be annulled as its provisions are contrary to the constitutional principles of the equality of citizens toward their obligations to the state.
Tax administration figures from the 209,190 tax returns submitted so far by the self-employed and freelancers show that 52.81% of professionals or 110,490 taxpayers fall within the presumption of income. That is, the taxable incomes they declared are lower than the minimum presumptive income, as a result of which they are taxed based on the presumption, and are asked to pay increased amounts of tax compared to previous years. And this is despite a 50% reduction in the fee for practicing a profession. The resulting tax for them is double or triple compared to previous years.
