Greek State to Tax Voluntarily Disclosed Hidden Income Higher than 50%

The Greek economic team is close to a plan that would tax voluntarily disclosed hidden income more than 50%, without the accord of creditors so far.

According to a Kathimerini newspaper report, in Thursday’s cabinet meeting on economic policy the framework of taxing those who choose to disclose money that has not been declared was decided. This is part of an effort to battle tax evasion.

The framework dictates that those who disclose undeclared income will be taxed based on the rate that applied at the time the income was obtained. To that rate, an additional penalty rate will be added. The penalty rate will decrease or increase based on the years the income was hidden.

For instance, if the tax evasion took place in 2003, the funds will be taxed at a rate of 42% plus 10% for late disclosure. If the tax evasion occurred in 2015, the additional penalty will be 1%.

Those who disclose hidden income must bring proof, such as bank statements or deposit receipts, of the year the funds were obtained so that the tax rate is decided.

If the tax evader pays all his dues at once, there will not be any additional penalties. Others can pay in installments with all additional penalties.

The previously hidden incomes that could be declared can be funds in Greek banks or financial institutions abroad, and can include bonds or shares.