“Vicious circle” the development with only cafes, explains the member of the Association of Accountants of Rodopi on radio Chronos 87.5fm
Changes are coming to the way professionals are taxed – What is reportedly in the works
Changes to the taxation system for freelancers, scientists and the self-employed are being prepared by the Ministry of Finance to tackle tax evasion, according to leaks to nationwide media.
Around the end of November, a bill is expected to come to the Parliament from the government, which will significantly change the existing scenario of the tax regime in Greece.
4 out of 5 professionals declare less… than the bottom line
The biggest problem is found among professionals, as nearly four in five appear to be reporting less than a minimum wage worker makes. Something that obviously cannot be true in reality and is what the Ministry of Finance wants to deal with. Furthermore, one in two professionals declares losses in their tax returns, i.e. they receive no personal income.
The fact regarding 4 out of 5 professionals was confirmed by Theodoros Savvakis, a member of the Rodopi Association of Accountants, speaking to Chronos radio 87.5fm and Bakirtzakis Municipality. “The financial staffs have always aimed at the tax evasion of small and medium-sized enterprises and have always applied sometimes proven and sometimes unproven procedures” he added, noting that along the way exactly the government’s plans will be seen.
Be that as it may, according to Mr. Savvakis, “we have to talk about tax conscience and business ethics”. When one starts a business, explained the president of the accountants, one must know the concepts, the rules and the economic environment in which one will operate, otherwise we have the results we see in the Greek reality.
How they hide income
According to in.gr, another factor to avoid taxation is the inclusion of expenses unrelated to their work as professional expenses. So, by increasing the company’s expenses, they avoid possible taxation.
The staff of the Ministry of Finance want to solve the way of taxation, as they believe that the problem is not found in the rates or the scale of taxation. According to sources in the Ministry, the goal is not to increase tax rates but to limit tax evasion and the so-called… starvation incomes.
“Vicious circle” the development with coffee in Komotini
Theodoros Savvakis also noticed that new shops are opening in Komotini, but mainly in the coffee sector. As he explained, these are similar businesses, which have a one-dimensional targeting and essentially compete for the same market share in the city. That is why he characterized this development model as a “vicious circle”, adding at the same time that “in Komotini we had many students, but now they have decreased in our city, they are not what they were 10-15 years ago”, while at the same time the per capita consumption of of students has decreased, due to the decrease in parents’ income and the increase in expenses.