Tax arrears for 1993-98 to be settled
The government has decided to resolve an estimated 10 million outstanding tax cases, covering the period 1993 to 1998, in a move that is estimated to bring in revenues of about 2.05 billion euros (700 billion drachmas). Economy and Finance Minister Nikos Christodoulakis announced the measure after a meeting with the representatives of artisans’ unions and small and medium-sized businesses. The measure is expected to affect about 740,000 artisans and self-employed professionals with an annual turnover of up to 220,000 euros (75 million drachmas), or 1.32 million euros (450 million drachmas) over six months, whose declared income was not inspected during the years in question. Payment of outstanding taxes will not have penalties or added interest attached and can be made in a lump sum or installments over two years. The Finance Ministry estimates that the measure, which covers 90 percent of outstanding tax cases, will bring it revenues of about 700 billion drachmas, providing state coffers with welcome relief. At the same time, this will relieve a large number of taxpayers of the anxiety of a tax audit. The announcement is also likely to provide a solution for outstanding value added tax cases dating from 1999 to 2001. This is a period during which most small and medium-sized businesses refused to pay the outstanding amounts, instead calling for a nationwide strike on March 13. The measure, which will be presented to Parliament soon, applies to businesses or people that had been taxed according to the objective criteria by the tax authorities, who had set a minimum level of payment. These criteria were in force from 1994 to 1998. This beneficial offer hinges on the business or person involved pledging to settle outstanding VAT cases for 1999-2001 as well. It has also been decided that these companies or individuals will have to keep their books for five years. They will be audited every three years, unless tax violations are found, in which case the audits will cover all the intervening years. Details of the settlement are to be discussed at a meeting between representatives of the Finance Ministry and businessmen on Monday. Christodoulakis said the talks had been useful and would constitute the basis for a framework for a dialogue on tax reform that is to start in about a month.
