BUSINESS

Revealed incomes to be taxed heavily

PROKOPIS HATZINIKOLAOU

As regards protected bank accounts, the chief representatives of the creditors say this might be possible under certain conditions.

TAGS: Taxation

Taxpayers who opt to reveal hidden incomes to the authorities will have to part with up to 60 percent of the funds, Kathimerini has learned, as sources say the government and the country’s creditors are close to a deal on the framework for the voluntary declaration of incomes deposited at banks abroad as well as in Greece.

A top government official has told Kathimerini that negotiations will continue in the coming days both regarding the voluntary declaration of incomes and the professional bank accounts that will be protected from confiscation. The aim is for both bills to be tabled in Parliament by the end of the month.

The Finance Ministry has put great pressure on the creditors in the last few days not to force Prime Minister Alexis Tsipras to break his promises on these issues, made during his speech at last month’s Thessaloniki International Fair. He had said that taxpayers would be able to hold onto part of their hidden incomes and that company accounts would be protected.

Sources say that the bill on voluntary declarations will provide for the tax on those taxpayers to range between 50 and 60 percent, depending on the stage of the investigation into their assets at which they decide to make the declaration. Therefore a 50 percent tax will apply to those who decide to inform the tax authorities of their hidden incomes without being the subject of any investigation; a 55 percent rate will apply to those who are already being investigated and decide to reveal the amount hidden; and a 60 percent rate will apply to those whom the inspectors have already identified as having hidden incomes and who decide to cooperate with the authorities.

Taxpayers who reveal their hidden incomes on their own initiative will be granted judicial amnesty, while the tax will be payable in installments.

As regards protected bank accounts, the chief representatives of the creditors say this might be possible under certain conditions. The government’s plan is for the account to be used for the payment of suppliers, salaries, taxes and social security contributions.

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