Receipts collection: Greece’s low & middle class employees & pensioners to carry the burden in new taxation system

Posted by in Economy

A new taxation system full of dangerous traps for the honest taxpayers who cannot evade taxes has been prepared by the Greek Finance Ministry. With the new regulations accepted by the coalition government parties, employees and pensioners will be obliged to collect receipts equal to one-fourth of their annual income and get heavy penalties of 22% tax payment if they fail to do so.

However the crazy scientist for lawmaker does not accept receipts  the taxpayers spend to cover basic needs like paying rent, buying heating oil, natural gas or woods to heat their homes, utility bills, traffic toll fees, alimony, donations, electricity bills, cable televisions, telephone, transport tickets of any kind, maintenance costs for buildings,  expenditure for purchase of assets like a car or a real estate and most weird expenditure for medical and hospital purposes!

Greeks readying to start spending

Accepted are only receipts from supermarkets, transport fuel, vehicles repair and maintenance, taxi, purchase of goods and services (except the above) and for spending in EU countries like hotel accommodation (!).

Greek sheep knitted in taxes

A tax return will be accepted only for expenditure for tutors (frontistirio) of secondary education.

Obliged to collect receipts are only the usual yoke, the ‘sheep’ living in this Greek state of unjust and favoritism, the employees and the pensioners.

They will have to submit to tax office receipts equivalent to 25% of their annual declared income. However the maximum collected receipts amount is 10,500 euro. That means that a taxpayer with annual income of more than 42,000+ euro is not obliged to collect more receipts.

Example: employee or pensioner with 20,000 euro annual income will have to collect receipts worth 5,000 euro.

If the taxpayer collects receipts only for 4,000, he will have to pay a fine of 220 euro for the receipts of 1,000 euro he failed to collect.

 Excempted from the receipts collections are the usual favored groups of self-employed (doctors, lawyers etc) and the real estate owners (for income from renting).

In Greece where the low and middle classes are hit mostly by the economic crisis, the new taxation system will be implemented in favor of the higher incomes – as usual.

PS I have already started to write down my long shopping list: 2 kigs of caviar, one yacht, one-week ski vacation package in Gdstaad… I’ll let you know my purchase targets for 2013, as long as I have my list ready.