ARCHANES,
Greece — The tax inspectors swept into this picturesque village in Crete during
the middle of a saint’s day celebration recently, moving from restaurant to
restaurant demanding receipts and financial records. Soon, customers annoyed by
the holiday disruption confronted them. Pushing, shoving and angry words
followed, and eventually the frightened inspectors were forced to flee.
“People are
so angry and so poor,” said
Nikolis Geniatakis, who has run his restaurant here
on the main square for the last 34 years and who watched the confrontation from
across the street. “What were the tax inspectors doing here? Why aren’t they
going after the big fish?”
If Greece
is ever going to get its public finances in order and escape grinding budget
austerity, it will have to do a better job collecting taxes. For years,
economists have pointed to rampant tax evasion as one of the country’s most
serious problems, depriving the government of money it badly needs.
But as the
confrontation in Archanes shows, the effort to collect taxes has not gone well;
having inspectors run out of town is hardly evidence that the rule of law is
taking root in the Greek economy. Rather than instilling a sense of fairness,
the more aggressive tax collection program in some ways appears to have
aggravated the problem. In particular, attempts to cast a broad net have only
fueled public anger at the wealthy, who are often seen as the main culprits.
In the
early days of the economic crisis here, Greek officials optimistically
predicted that tax collection would soon improve. They bragged of using aerial
photographs to get tax evaders who failed to declare their swimming pools on
tax returns as required. They zeroed in on doctors who reported low incomes but
who somehow paid high rents in affluent neighborhoods.
But despite
such headline-grabbing efforts and an astonishing number of new tax laws (22 in
the last two years), some question whether the authorities are actually making
progress. At the end of 2011, tax arrears totaled 45 billion euros, or about
$62.1 billion. At the end of 2012, €56 billion, or about $77.3 billion. At the
end of July, with the most active tax period to come, the arrears had risen to
€60 billion, or almost $83 billion, equivalent to nearly a fifth of the
government’s public debt.
Experts say
many of the tax collection measures are not effective, especially those aimed
at the rich. Taxing yacht owners, for instance, only encouraged them to moor
their boats elsewhere, emptying Greek marinas.
Efforts to
overhaul the tax system, many accountants say, have created such a confusing
jumble of laws that it will take months, if not years, to understand them.
Consolidating and reorganizing the tax bureaus, intended to save money in the
long run, has created an administrative nightmare in the short run, with files
arriving months after a move, if at all, union officials say.
But perhaps
as troublesome, some experts say, is the growing grass-roots anger that led the
customers to turn against the four tax inspectors recently in Archanes. Tax
collectors have been threatened or chased out of many towns, union officials
say, though only a few cases, like the one here, get much attention.
For Mr.
Geniatakis, the arrival of the tax inspectors was the kind of showy government
move that hurts the little guy but amounts to nothing. In these hard times, he
and the other restaurant owners had pooled €1,000 each, about $1,380, for music
and decorations, only to see their investment disappear with the crowds when
the scuffle began.
“They are
driving us crazy, but what about the Lagarde list?” he said, referring to about
2,000 tax evasion suspects with Swiss bank accounts whose names were turned
over to Greek officials in 2010.
When a
journalist, Kostas Vaxevanis, published the list last year, he was charged with
infringement of privacy but was acquitted and is now being retried. So far, no
one on the Lagarde list is facing legal action, though officials, answering
questions in Parliament earlier this month, said 150 audits were under way. But
it remained unclear how aggressive the investigation was.
An article
in Eleftherotypia recently reported that the Lagarde list investigations and
other high-profile cases were about to be moved from an elite auditing unit to
local tax offices. Such a move, the newspaper said, would effectively end
further investigations because the tax offices lacked the skills to quickly
handle them. The paper quoted a senior finance ministry official as saying too
much time had been wasted on investigating past fraud and that the focus should
now be on new cases. The Finance Ministry issued a brief statement denying the
story. The next day, it asked Parliament to extend the statute of limitation on
tax evasion by two years.
But the lack
of visible action is one of the reasons many Greeks cite for their disdain for
the tax collection efforts. Accountants say efforts to overhaul the tax code
also have failed. “The goal was a simplified system,” said Antonis Mouzakis, a
prominent tax accountant in Athens. “But what we have got now is not
simplified. It is a mess.”
Anna
Apostolou, an accountant who works mostly for small-business owners, said many
of her clients just refuse to pay or turn to the courts, knowing that will tie
up payment for years.
“They are
so furious at what they see,” she said. “They have just decided they will not
pay. If they are fined they will not pay.”
In the
past, Greek authorities derided the country’s tax collectors as lazy and
corrupt, blaming them for many of the problems with the system.
But in
recent months, the union has begun to fight back, speaking out on a number of
issues and starting a poster campaign telling citizens that the collectors are
not at fault.
Tryfon
Alexiadis, the vice president of the tax collectors union, said he wondered
whether his bosses even want the system to improve. Mr. Alexiadis pointed out
that Greece has only 0.87 auditors for every 1,000 citizens, compared with
Germany’s rate of 1.36 and Belgium’s 2.67.
Until
recently, only nine auditors were assigned to a list of 54,000 cases involving
money sent abroad, even after 24,000 of those cases were deemed likely to
involve tax evasion, he said. After they protested in September, the number of
auditors was raised to 50. The Finance Ministry said recently in Parliament
that two audits have been completed so far.
In the end,
Mr. Alexiadis said, the small guy gets hit hard simply because he is an easier
target. “It’s not a conspiracy to get the small guy,” he said. “It’s just that
they don’t have lawyers or friends to make phone calls to the politicians for
them.”
To be sure,
there have been some high-profile arrests in the last year. But many Greeks
have little confidence that any of them will add up to much. In most cases, the
wealthy have spent only a day or two in jail before being released.
Haris
Theoharis, Greece’s secretary general for public revenues, agreed with some of
the union’s arguments, including that there are too few auditors. But he said
that he was also confronting a resistant bureaucracy. Auditors insist on a full
audit, he said, when settling for the basics and moving on would no doubt yield
better results.
Next year,
Greek officials will also have to give up on one tax collection system that has
worked well so far: attaching property tax bills to electric bills. The courts
have ruled that the threat of losing electricity is illegal.
Δεν υπάρχουν σχόλια:
Δημοσίευση σχολίου
Ρίξε και εσύ μια αλήθεια ή ένα ψέμα ή κι ακόμα άλλη μιά αοριστία..