Friday 8 January 2010

Greece tax proposals



Almost all news channels in Greece are currently covering the tax proposals being put forward by the government to resolve the current critical situation the country finds itself in. The task of preventing tax evasion is mammoth as few Greeks appear to declare true earnings. Now if, like me your earnings (pension) is taxed in the UK then many of the current proposals will have little / no effect on us, however I do have some concerns for the future effect should proposals relating to property & inheritance tax be applied.

If I read the proposals correctly (slightly difficult as they are all in Greek and the best online translator seems to struggle) then it is proposed to give allowances against tax returns for many, many personal purchases. These include installation of heating, air conditioning, some fuel costs, certain household maintenance, insurances and even some food purchases. The purpose is to force the retailers to give receipts (as you will have to produce these to claim the allowance) and this means even the local market stall holder.

Other allowances will be forthcoming for disabled personnel.

I am uncertain if the proposals will resolve the current tax evasion, as I see the local traders having two tariffs, one for the cost with a receipt and one for the cost without !!!!

The alternative solution becomes far more of a worry to me. The potential massive government tax hike that could be applied to food and other basic necessities.

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