New measure to benefit tax dodgers

By Prokopis Hatzinikolaou

The government is offering amnesty to all tax dodgers, even those under investigation by prosecuting authorities, therefore writing off very serious tax crimes that normally get punished with huge fines and jail terms between 10 and 20 years.

There is a condition to receiving amnesty over illegal incomes and that is the payment of just 15 percent of funds positioned abroad and 30 percent of the capital in domestic banks, according to a draft law on the legalization of illegal incomes that the Finance Ministry yesterday put up for public consultation, lasting eight days.

The normal course of action for cases that have been found guilty of tax evasion is a very hefty fine and taxation at rates as hight as 45 percent, i.e. according to the tax brackets that originally applied during the period when the tax evasion was committed.

The new bill provides for immunity from any legal action over illegal incomes that will be declared. Foreign bank account holders who legalize their funds in that fashion will not even have to repatriate their capital.