Govt eyes strict measures to stamp out tax evasion; cash nixed for property transactions, all POS terminals connected with cash registers, state

Measures to curb widespread tax-evasion and avoidance in the country – a long-standing scourge plaguing Greece’s economy – were announced by Greek Prime Minister Kyriakos Mitsotakis himself on Saturday, who spoke at a state-of-the-economy address in Thessaloniki on the sidelines of annual trade fair.

Greek finances are expected to come under increasing pressure over the coming period, as Mitsotakis’ center-right government has announced billions of euros worth of relief measures and infrastructure restoration works throughout the flood-ravaged Thessaly plain, with more aid promised to individuals and businesses drastically affected by last week’s massive storm damage.

“Tax evaders will be forced to pay taxes in line with their actual income,” Mitsotakis said, speaking before a mostly partisan audience at the 87the Thessaloniki International Fair (TIF), and in repeating a pledge repeatedly uttered by previous Greek premiers over the past several decades.

According to figures released by Greece’s semi-autonomous tax bureau (AADE), tens of thousands of self-employed professionals in the country declared taxable income of roughly 4.3 billion euros last year, with the real number estimated at a more than a whopping 40 billion euros.

The most significant measure announced by Mitsotakis is the universal and obligatory connection of POS terminals with a corresponding business’s cash register and, in turn, with the tax bureau. This is expected to cover around 450,000 businesses in the country by the beginning of the year.

Additionally, real estate purchases will be conducted only via electronic payments, with cash prohibited in such transactions.

Other measures include the obligatory transfer to digital invoices, from print copies, as well as e-bookkeeping, and stiff fines for transactions of above 500 euros with cash.