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Greek Homeless To Pay €116.25 in Case of a Tax Declaration…

This is a nice example about the insanity ruling the mad house called “Greece in Times of IMF Austerity”. Supposedly one of the new society class of the neo-homeless due to the economic crisis would want to make a tax declaration for 2012. He would declare zero euro income for the calender year 2011.

According to Greek taxation law, the Finance Ministry estimates that one unmarried person needs 3,000 euro per year to survive, therefore the homeless is charged with 3,000 euro ‘deemed income’. Furthermore he will have to prove he made expenses at 25% of his ‘deemed income’ by showing receipts totalling 750 euro.

If he cannot show receipts, he will be charged with a fine of 10%, that is 75 euro. Also he will have to pay tax in advance 55% of the 75 euro. That is 41,25 euro.

News postal The Best.gr that brought this example, calculated that the homeless will have to pay 116.25 euro for ‘daring’ to submit a tax declaration with zero income.

Even if I do not understand the calculation, to ask a homeless or any person with zero income to pay taxes is if not weird at least exploitation of the poor.

Homeless with Tax Dignity

The example of the homeless is maybe an extreme one, but any person with income lower than 5,000 euro per year can fall into this trap. Even if the EU describes as poor people with up to 6,000 euro annual income.

In Greece, tax-free income is up to 5,000 euro per year (416 euro per month). However even the really poor are obliged to spend 25% of their income in order to boost the Greek economy in deep recession… This spending has to be proven through receipts. Otherwise there is a fine of 10% is imposed for not spending the money you do not have…

 

 

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7 comments

  1. That’s not an example of Troika austerity hardships, but of Greek politicians screwing the tax laws up. Nobody forced Pasok to pass exactly this bill, the stupidity in it is of their own making. Not that more can be expected from ND and probably not from the inexperienced Syriza folks, neither. That’s just another one of the myriad of problems plaguing Hellas: Her politicians can’t even create laws that make sense.

    • This begs the question: What education, if any, do Greek politicians have? A first semester student should be able to write a better tax law that omitts such obvious clashes with reality.

    • Panostk, Greece

      to make this story – wich by the way is totaly true – “funnier” the proof of receipts you have to provide have a list of exclusions that ammong others include the most basic needs a man has to cover like electricity, BUS FARES, phone, water (god forbid) lawyer fees, tuition fees etc.
      And all that are for the lucky who still have job that pays them those 416 euros a month.

      Oh and the new TAX laws of 2011 says that no one (even the homeless mentioned) has the right not to file a tax declaration and in the “unlike scenario” that he is arrested for slepping in , say , a park bench he has to hire a lawyer to defend him for TAX evasion.

      I think that the “stupidity” mentioned above is left well behind.

      • I understand that tourists should show their solidarity by collecting receipes and giving them to the homeless. Almost as good as real money!

        Looks like Boeotia (aka Gotham, Schilda, Kocourkov, etc) is alive and well, thanks to the Greek government. Even though it’s madness, there’s method to it.

  2. keeptalkinggreece

    you misread amd misunderstood the post