- Title: GREECE: Greece names more than 4,000 tax evaders owing over 14 billion euros
- Date: 24th January 2012
- Summary: VIEW OF ENTIRE LIST MORE OF THE LIST MORE OF SUMS ON LIST VARIOUS OF LIST ATHENS, GREECE (JANUARY 23, 2012) (REUTERS) VARIOUS OF CROWDS OF PEOPLE WALKING (SOUNDBITE) (Greek) ILIAS SKORDILIS, PENSIONER, SAYING: "I think after the fact it's quite late now, they won't be able to catch them because a lot of them will have moved their money out of the country to offshore companies. And of course the corruption is so deep that if someone were to look into it they would (probably) find that politicians and tax evaders are co-operating with each other and both complicit." CROWDS OF PEOPLE WALKING IN ATHENS (SOUNDBITE) (Greek) TINA BOTONI, 50, HOMEMAKER, SAYING: "I hope it's true. I hope they catch them, we all hope so, but unfortunately usually nothing ever happens." VARIOUS OF GREEKS WALKING ON THE STREET (SOUNDBITE) (Greek) THEODORE MARAVEGIAS, 57, A FORMER INVESTMENT BANKER, SAYING: "If they wanted to they would have collected it sooner; there is no will to do it or other things. They have disappointed us, unfortunately." MINISTRY OF FINANCE OFFICE OF MINISTRY ON FLOOR
- Embargoed: 8th February 2012 12:00
- Keywords:
- Location: Greece, Greece
- Country: Greece
- Topics: Economy,Politics
- Reuters ID: LVAA1FI6AKQ7K5LYX5RLRKHLMPXM
- Story Text: The Greek government has named thousands of prominent businessmen and celebrities as still owing the state taxes totalling more than 14 billion euros, as Greece vows to crack down on one of its biggest problems: tax evasion.
The Greek finance ministry has released a "name and shame" list of the names of more than 4,000 tax evaders who owe the state about 14 billion euros.
The list of 4,151 major debtors with overdue debts to the state totalling 14.877 billion euros includes celebrities, former athletes, well-known business owners, accountants, and are individuals who have not paid or completed their payback arrangement with the government.
Some are already in jail or have served jail sentences for other financial crimes.
The list includes a host of convicted tax frauds and failed businessmen, a prominent singer and husband of a former government minister as well as a retired basketball star who was recently released after a two-year sentence for illegal ownership of an arms cache.
The largest single debt of 952 million euros is by a tax fraudster already serving life in prison for issuing fake receipts to companies.
The first 15 on the list each owe sums of more than 100 million euros. The lowest debt on the list is about 170,000 euros.
Greece had to change privacy laws to allow the publication of the list, which had been kept in a safe in parliament, where lawmakers were allowed to read it without taking notes.
Tackling tax evasion has been one of the most difficult struggles for the Greek government and is crucial to reducing Greece's debt.
It was revealed in 2010 that only a small percentage of Greeks, primarily wage earners and pensioners, properly pay their taxes. According to finance ministry officials in 2010, five million of Greece's 11 million population, almost half the population, declared annual incomes of below 12,000 euros.
The government has said it has made tax evasion a priority, but admits it may not expect to collect all these sums as some of them are businesses that have already shut down.
Greeks were sceptical however when they heard the news, as corruption runs deep in Greece, and they have lost faith in the fairness of the judicial system, as politicians involved in various scandals over the years have not been penalised.
"I think after the fact it's quite late now, they won't be able to catch them because a lot of them will have moved their money out of the country to offshore companies. And of course the corruption is so deep that if someone were to look into it they would (probably) find that politicians and tax evaders are co-operating with each other and both complicit," said Ilias Skordilis, a 62-year-old pensioner.
"I hope it's true. I hope they catch them, we all hope so, but unfortunately usually nothing ever happens," said 50-year-old Tina Bonoti.
In November 2011, for the first time, authorities began arresting high profile individuals and businessmen for tax evasion. Some cleared their debts while others were sent to jail, and the campaign continues.
Tax officials have said whoever doesn't pay has their bank accounts frozen, and the 'name and shame' list is to hinder others.
The first campaign to create a tax conscience began in 2009 with the government promoting tax breaks if people asked for receipts from goods and services, as Greeks never asked for receipts. But operations to catch tax cheats were bogged down by a laborious and tangled bureaucratic system. The International Monetary Fund and European Commission are currently assisting Greek authorities to create a more successful system to tackle the issue.
According to a European Commission Task Force assisting Greece, the country has 60 billion euros in unpaid taxes, a figure equivalent to around 25 percent of Greek GDP. Greek tax authorities say the number is more at 35 billion euros.
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