Greece Misses Tax Targets

December 18, 2012 Taxation in Greece

Taxes in GreeceATHENS – Greece is struggling in its efforts to collect taxes, but there is still hope for the government that the situation could be righted in 2013.

The Task Force for Greece, which is charged with the responsibility to provide technical assistance to the government of Greece for the reform process in the country, published its third quarterly progress report on December 17th, detailing the national efforts to improve and help recover the economy.

The report showed that despite the government’s ongoing attempts to mend the country’s economic situation, the national tax authorities are not keeping up with their targets for the recovery of tax debts, with only EUR 983 million of unpaid taxes having been collected in 2012, well below the goal of EUR 2 billion.

Further, Greek tax authorities are not conducting enough investigations into the tax affairs of wealthy individuals, with only 88 audits carried out this year on the tax affairs of large corporate taxpayers and only 467 audits launched into the tax affairs of high wealth individuals, compared to the targets for the year of 300 and 1 300 respectively.

Despite the lack of results, the Task Force still had some praise for the Greek government and the national tax authorities, saying that the joint efforts of Greece and the European Union are gaining momentum, and the government has implemented several new measures and programs which should boost tax collections, reduce tax evasion and aid the recovery efforts in 2013.

Photo by JeromeG111