FINANCE

Tax evasion persists among the self-employed

Tax evasion persists among the self-employed

Whether the economy is growing or in recession, whether it is operating normally or suffering from a pandemic, freelancers report about the same low incomes.

Data published by Kathimerini give off a strong odor of widespread tax evasion, as the vast majority of self-employed declare incomes on or below the poverty line to the tax office.

Taxi drivers with a monthly income of 310 euros, builders, carpenters who live on the brink of poverty, yet spend more than they declare, lawyers with meager net incomes, as well as dentists, doctors, bar owners and hairdressers compose a depressing picture that provokes society as a whole, especially salary workers who pay high taxes.

The figures revealed show that the declared incomes in 2019 – a normal year – compared to 2021, when the pandemic was afflicting the country, did not change significantly. Taxi operators reported an average net taxable income of €2,774 for 2019 (€231/month) and €3,726 for 2021. Some 65% of bar owners reported losses. Construction workers showed net profits of less than 25% of gross revenues.

The tax administration has already started complex cross-checks of the incomes taxpayers declare so as to detect tax evasion via hiding incomes and inflating expenses.

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