Dozens of accountants and tax advisers took to the streets of downtown Athens on Friday to protest the tax law that imposes exhaustive fines for errors and omissions in tax declarations, delays in Value Added Tax payments and other mistakes that could occur due to ‘human errors’.
Some 300 protesters marched in Athens and demanded that the finance ministry withdraws the law.
“They kill the small- and medium businesses,” and “they will close down every business with such exhaustive fines” the protesters said.
According to the law that started to be applied since 1.1.2014, heavy fines that are in no proportion to the value of the tax violation are being imposed driving to desperation businesses and tax payers.
A fine of 1,000 euro can be applied for even a day of delay in the payment of V.A.T. to tax office.
Some examples of another crazy Greek tax law:
– For false declaration of payroll tax, where a company had to pay to the tax office 4 euro per month, the fine imposed at the end of the year reaches the astronomical amount of 43,055.68 euro. then each violation (not payment) repeats each month before the fine doubles and quadruples in 5 years.
If I understand it right, 4 euro per month x 12 = 48 euro. The fine 2,500 euro x 12 months turns 30,000 euro at the end of the year, if the tax of 48 euro is not paid at the end of the year?
– For a delay of several days in VAT payment of 200 euro to the tax office, a company is fined with 2,500 euro.
– Non- submission of VAT return worth 2,000 euro (delay 25 days ) a fine of 1,000 euro will be imposed. the fine sums up to 2,000 euro if the violations is repeated for a second time within 5 years and up to 4,000 euro if the violation occurs for a third time. (source: capital.gr)
“When we make mistakes, we’re fined. But when they {the finance ministry] make so big mistakes that are continuously corrected with circulars, why do they pay nothing?” the president of accountants confederation POFEE, Avraam Panidis, said during a press conference on Thursday.
POFEE general secretary Nikolaos Kambanis said that when they asked for a meeting with the author of the fines provisions, they were told that the author had “passed away”. “These fines provisions have nothing to do with combating tax evasion. The only relation they have is with stupidity!.” Kambanis commented.
Tax Adviser Antonis Mouzakis stressed that the exorbitant fines will have only one result: “to increase the outstanding debts to the state from 63 billion euro to 70 billion and to give the final trip up to businesses in this country.”
Fridays protesters had a meeting with deputy finance minister Mavraganis who told them to submit their proposals in written form.
Fact is that the law was approved by coalition government Nea Dimokratia and PASOK during a voting at the parliament last year.
PS that’s the problem when lawmakers have no idea of the real world and vote laws just for the sake of the Troika and the country’s lenders. Oh! and in order to receive the next bailout installment.
