Thousands of large-scale tax evasion cases at risk of “statute limitation”

Thousands of tax affairs of wealthy individuals “suspected” of tax evasion are at risk to be written off due to statute limitation at the end of the year.

Most of the cases are included in 65 CDs containing the names of 1.3 million taxpayers who have made deposits and withdrawals of more than 300,000 euros in the years 2000-2012.

There are also tax cases from the Lagarde and the Borjans lists at risk to be written off as tax controls would first need a prosecution order.

The cases refer to individuals and businesses with bank accounts in Greece or abroad.

According to daily Naftemporiki, the time limit set by the state to complete the controls is the 31. December 2016 and there is no possibility for a new extension of even a couple of months as the lenders’ representative expressly prohibit  the Greek government to give extension in limitation period of tax cases.

The government is at risk to permanently lose the right to charge taxes and fines mainly to thousands financially strong Greek taxpayers who have committed large-scale tax evasion, hiding incomes of hundreds of thousands or even millions of euros.

In many of these cases the inspections have not even started or are in progress. The auditors of the General Secretariat of Public Revenue (GGDE) clearly state that they no longer have time to check many important pending cases since the time remaining until the end of 2016, is not sufficient.

The main reasons for the control delays are:

1 The insufficient staffing in the relevant tax assessment services.

2 The fact that GGDE did not proceed in time to the major issue of the “prioritization process” of the most important tax cases in order to manage to conclude the audits within 2016.

3  The fact that the Department of Great Wealth Control (KEFOMEP) has been left without director after the director was dismissed in September. Last week, the deputy director acting as head director resigned, noting that is it impossible that so many tax evasion cases escape and be written off. According to Naftemporiki, information indicates that the resignation reason was the GGDE decision to transfer a tax officer to another post. The said tax officer had allegedly indirectly notify a taxpayer that a charge of 5-million-euro in taxes and fines would be written off.

4 The absence of reaction and effective initiatives to lift the deadlock from the part of the political leadership of the Finance Ministry which seems to follow the whole situation without active participation.

In many of the critical case regarding taxpayers with large cash deposits amounts in foreign banks, the auditors should explore and cross-check data from bank statements and tax declarations for the economic years 2000-2012, that is for a total of 13 years.

The failure to complete the audit in these cases before 31/12/2016 will therefore lead to statute limitation for the control of bank accounts moves and tax declarations.

In very many cases of “black money” trafficking during 2000-2010, the state will miss the right to thoroughly audit the actions of the rich Greek taxpayers.

PS 2000-2010 were the Best Years of the Greek €uro Life…