Unexplained Funds Face 33% Tax in Greece

November 10, 2015 Taxation in Greece

ATHENS – Any explainable deposits found on the bank account of a Greek taxpayer will be taxed at a rate of 33 percent.

In a circular released on November 9th the Alternate General Secretary for Public Revenues in Greece Ioannis Bakas reminded tax workers that current legislation requires the imposition of a 33 percent tax on any unexplained profits enjoyed by individual taxpayers.

The circular specifically applies to the situation where tax authorities are investigating the tax affairs of a individual taxpayer, and, subsequently, uncover deposits in their bank account which cannot be adequately explained by the taxpayer.

In such cases, the deposits shall be treated as a result of illicit behavior or illegal activity, which are subject to a 33 percent tax.

In the circular it was also urged that investigators should be particular cautious in situations where taxpayers claim that the deposits were a result of charities, donations, or funds from family.

The ultimate goal of the investigations into such deposits is to encourage the flow of black money and untaxed funds, a continuing problem for the country, as it tries to raise to tax revenues and achieve a balanced budget.

However, warnings were issued to ensure that the deposits were no simply re-deposits made by the taxpayer following withdrawals earlier in the year aimed at bypassing capital control rules.

Photo By: Blatant World