Study: Greek State Loses Up To €16 Bln per Year From Tax Evasion

Wednesday, March 22nd, 2017
Last Update: 14:16

The Greek State loses up to 16 billion euros per year, or 32 percent of annual revenue, from tax evasion, a new study shows.

The study was conducted by the diaNEOsis institution, using data from international organizations as well. The report was presented at a conference on Tuesday:

– Three out of ten euros from value added tax due remain in the tax evaders’ pockets

– If all Greeks paid VAT, income tax and security contributions like the average of OECD countries, tax revenues would increase by almost 5 percent of GDP

– During the bailout programs, Greece is consistently losing 28-31 percent of potential VAT revenue. The worst year was 2013, when the country lost a total 8.5 billion euros from VAT

– Only 1.6 percent of taxpayers (120,000) are required to pay 2.7 billion euros, or 29.5 percent of the total income tax

According to the authors of the report, the main causes of tax fraud are the complexity of the tax system and continuously changing tax laws, the insecurity of taxpayers who do not comprehend the tax laws fully, the insecurity of tax officials in exercising their duties, the frequent rises in taxes and the lack of political will to tackle the phenomenon.

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