Monday, 27 May 2013

Only in Greece possible: name your illegal assets ‘donations’ and tax them with just 5%

Posted by in Economy
Only in Greece possible: name your illegal assets ‘donations’ and tax them with just 5%There are times when the honest Greek wants to bang his head on the wall. Any wall. Made of any material (wood, iron, stone). Main thing is the wall is solid and can stand the head weight of a naturally born idiot. These times occur when one reads, about favoritism and cover up attempts. When the media report about tax evaders and other state debtors escaping imprisonment with ridiculous bail or with a long judicial process. So long that when the time comes for the defender to appear in court, the ‘crime’ has been simply written-off due to time laps.
And then, there comes news that make the honest Greek taxpayer to wants to protect his own head. Because there is no wall solid enough to carry the troubled head….
Like in the cases, when one reads that

The finance ministry plans to fine with only 5% tax those who sent their money abroad and cannot justify where the money came from.
General Secretary for Revenues, Haris Theocharis, issued a circular three months ago revealing the government plans to give so-called “absolution” to those who sent their money abroad but cannot justify the source of this money.
These clever guys and girls will be taxed with only 5% and not 45% as it was claimed some weeks/months/years/decades/centuries ago.
Attempt to Cover-up -Retroactive  favoritism to those who sent their money abroad
The circular of last February (POL 1033/21-2-2013) enables 54,000 taxpayers who sent money abroad during 2010-2012 and the 2,200 names included in the Lagarde list and they can not justify the tax return, to legalize their deposits by rename them in “donations”!
The taxpayers involved will have to submit a declaration of having received a later-dated donation by relatives and have their money legalized by paying just donation tax of 5%.
In simple words, if someone had mounted a wealth legally or illegally and sent the money abroad three years ago, and is unable to justify the origin of the money, all this person has to do is to submit a supplementary declaration to the Tax Office that the particular amount of money came from a donation made by a relative or another person. Depending on the degree of kinship the smart guy will pay tax 5% to 40% and legalize the money without facing any other legal consequence.
If someone on the Lagarde list has 5 million euro but in Greece declares tax return of 10,000 euro annual income, he can declare that the money was a private donation and pay just a 5% tax.
Already quite a number of businessmen made use of this donation option. There are reports of a businesswoman who declared she donated one million euro to her husband and he paid 100,000 euro in taxes.
At the same time, 212,000 taxpayers in Greece with overdue debts to the state for amounts of more than  € 5,000 will face felony charges and put into prison, according to the taxation law. (Full story Proto Thema)
Of course, the donor must be able to justify where their money came from and verify he had paid taxes for donated amount.
Oh, the FinMin circular was issued … secretly. But apparently no secretly enough and those beneficiaries knew about the Greek FinMin’s generosity. Only the idiot of  12,000- 20,000 euro annual income knew nothing. Then this circular had nothing to do with him.
No wonder, the investigation about the Lagarde list extends from day to day, week to week, month to month, year to year… Most likely until all the money without legal source (i.e. paying tax) is blessed and converted into donation.

Neaty-looking and nicely-trimmed Haris Theocharis is the same guy who grabs bank-account interest of 252 euro and fines it with solidarity tax of 1 up to 4 percent. Certainly. He does not take his decisions alone and he probably creatively adds to the orders of his bosses: Stournaras, Samaras and the other kids of the block.
PS What? You’re speechless? What you don’t say…

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