First seasonal tax evasion audits on tourist destinations are grim. Controls on several islands of the Cyclades in central Aegean Sea showed that 70% of businesses do not issue receipts.
The most striking example of tax evasion is the case of a large entertainment facility in Akrotiri area on the island of Santorini. The owner only did not issue receipts. The cheeky club owner had not even bother to have a cash register machine!
The facility is to be sanctioned according to law, media report.
Tax officers may close a business for a couple of days and impose fines, if there is proof of tax evasion. However, a new law is underway to avoid the business temporary closure but increase the fines.
However, sanctions do not seem to scare off business owners. Apparently the profits from the tax evasion are much higher that a couple of days closure or a fine.
The tricks to hide revenues are multiple: sometimes business owners do not issue receipts, the cash register is ‘fake’ or they use a software that limits the daily revenues. Even POS devices have been found to not be connected to Greek banks.
Tax authorities aim to have old technology cash registers replaced.
Ever since the crisis broke out, there have been thoughts and proposals to have the cash registers connected directly to the tax offices. This measure has been never implemented.
A suggestion is that this measure would not solve the problem, as most businesses prefer the easiest way of tax evasion: to not issue receipts.
Tax auditors made the first ‘raid’ of the year over the long weekend 3-5 June 2017. Top on the list for suspected tax evasion were the Cyclades islands.
The audits will be conducted all through the summer holidays seasons across all touristic areas of the country.
Greece has been desperately trying to combat tax evasion in touristic areas but often in vain. In the small communities of the islands, the moment tax auditors identify themselves, the news spreads like a wild fire. Those business owners who notoriously evade taxes rush to comply with the laws – and return to their old habits the moment the tax auditors get on board of the next ferry boat.
I just generally pay by card, at least it goes through the banking system and not to the owners pocket! What he does with the government after that is not my problem, and in the end it is up to the govt to check bank accounts and see very high revenue with no reciepts!
I speak some Greek but I pretend I dont to see their reactions, frequently they swear at me when I pull my card out! I pretend I didnt understand, no need to fight with such people!
what idiotic stuff you try to post here. Nobody complains when I pull my payment card out. and never heard of a complaint by my foreign friends visiting touristic areas in Greece.
I’d swear and complain if our friend syrizee the 1st pulled anything out of his pocket.
I also think it’s idiotic. I visited Greece last year and nobody yelled at me when I pulled my card. Never met nicest people. I don’t know if they are nice to the government, too.
Everyone will happily take a card. They may prefer cash, as it doesn’t leave a paper trail, but nobody will refuse card payment if they have a POS machine.
When I had a bar in Corfu, anytime the tax inspectors hit the area, I’d get a call from other businesses in the area to warn me. The ‘jungle drum’ network worked well. Local rivalry was forgotten in the face of the common enemy – the avaricious tax man!
what bs is this post all about? I get receipts everywhere I go in Greece. my credit card is welcome everywhere I go so i don’t see why such lies arepublished.
And thats why a loan relief from EU is out of the question from the perspective of the average EU citizent – before the Greeks start tidiyng up in there own mess and show some decency to their own country, we wont help.
For over a decade I visit Greece twice a year. When I rent a car they want cash, even for 10 days (and no matter which local company I go to). Always.
Every now and again on the island I do get receipts: for a frappe or a meal.
Sorry Greek friends, it is not a lie. And you know very well that the national sport of Greece, besides basket ball, is tax evasion. Then again the national sport of the governmental authorities is corruption.