ND deputies criticize the new bill on taxation of small businesses

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The equalization of the imputed income rate, which the government is reintroducing to identify hidden income and non-payment of VAT by freelancers and self-employed people, has caused a lot of “criticism” within New Democracy, since this part of the population is a key “pool” of voters.

“Blue” deputies characterize the new tax system as an indirect admission of the inadequacy of the tax authorities in curbing tax evasion, despite the much publicized digitization and deployment of new electronic weapons by the AADE.

Throughout the year, the government threatened almost everyone: that they are potential tax evaders and that… artificial intelligence will identify them and show that they live like little ones “Rockefellers”.

But since it began to resort to measures like “we will tell you how much you earn and it doesn’t matter whether you have this money or not”then this in itself is proof that “executive state” ultimately failed in this too.

Economic staff explained that imputed income rates are trade-offs under tax law, which is a very vague term and subject to wide margins of subjectivity. A person can break a leg and not work for three months, but the tax authorities say that he can work on crutches.

The term “fight against imputed income” itself does not mean anything except that the taxpayer will have to convince the tax service that he is not an elephant. If the tax authorities listening to him DO NOT WANT to be convinced, then it all ends there, and then the only way out for the taxpayer becomes… the courts.

Courts, however, cost a lot of money and will make decisions after many years (usually similar courts in Greece last from 5 to 10 years). But taxes must be paid now, as well as fines and penalties for non-payment…

This is exactly what the government is counting on: nthe ability of citizens to appeal to… justice that is costly for them. They will either close their business and leave the profession, or they will simply pay stoically. This is where the following oxymoron will be observed:

Majority’s objection “New Democracy” is that the declarations of the leadership of the Ministry of Finance, in fact, the vast majority of freelancers and taxpayers are recorded “like tax evaders”and this at a time when the ND government in 2021 equated their taxation to the taxation of employees and “cut” their tax by at least 1300 euros per year.

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“We are alienating small businesses, those who came to us en masse in the last elections,” say New Democracy deputies.

According to the figures, the entire burden will fall on 473,000 taxpayers, as they will be asked to pay an additional tax of €1,440 each, while high-income professionals will pay €560 less.

Based on the calculations of the economic headquarters, this tax will bring additional income to the state treasury in the amount of 870 million euros, but the net benefit for the state will be 606 million euros, since it will have losses from a reduction of up to 50% of the business tax, which will be reaped by specialists with average and high incomes!

Many aspects of the new tax regime for freelancers remain unclear and are expected to be clarified when the bill is introduced into Parliament in November. For example, will those who are paid via blockchain and declare more than the minimum imputed income also have a 50% business tax cut that will apply to those who are employed but have a blockchain, and many other uncertainties.

Another question raised by ND during negotiations between them: why the government resorts to imputed tax and does not oblige all freelancers and self-employed people to pay for their services only with POS cards or bank funds in order to have a complete and reliable picture of their turnover. Promising in the future that if everyone pays taxes, tax rates will be reduced. However, it is one thing to pay 50% tax on an income of 100,000, another – 50% on 9,000, it is simply impossible to live on this money in modern Greece.

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It is worth noting that thousands of private entrepreneurs and freelancers voted for “ND” precisely in order to avoid, in their opinion, the difficult tax policy that SYRIZA was preparing for them. Surely the new president of SYRIZA, Kasselakis, will take advantage of this (unless, of course, he completely collapses the party). In the end, Andrulakis is already breathing down his back, who will no doubt take advantage of the discontent of private entrepreneurs.

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