Editing Economy of Greece (section)

=== Tax evasion ===
{{Main|Tax evasion and corruption in Greece}}

Greece suffers from very high levels of [[tax evasion]]. In the last quarter of 2005, tax evasion reached 49%,<ref name="Ethnos Forodiafygi">{{cite web |url=http://www.ethnos.gr/article.asp?catid=22770&subid=2&pubid=29345 |script-title=el:Πτώση της φοροδιαφυγής στο 41,6% από 49% το τελευταίο εξάμηνο |year=2006 |publisher=Ethnos |access-date=12 October 2011 |language=el |archive-url=https://web.archive.org/web/20130512060357/http://www.ethnos.gr/article.asp?catid=22770&subid=2&pubid=29345 |archive-date=12 May 2013 |url-status=dead}}</ref> while in January 2006 it fell to 41.6%.<ref name="Ethnos Forodiafygi" /> It is worth noting that the newspaper [[Ethnos (newspaper)|Ethnos]] which published these figures went bankrupt; it is no longer published and some sources suggest that the information it had published was highly debatable.<ref>{{cite web| url = http://www.politisonline.com/%CE%B5%CE%BB%CE%BB%CE%AC%CE%B4%CE%B1/438149/louketo-ston-pigaso-klinoun-ethnos-imerisia-sto-dromo-450-ergazomeni/| title = Κλείνει το Εθνος (12 September 2017)| date = 12 June 2017}}</ref> A study by researchers from the [[University of Chicago]] concluded that tax evasion in 2009 by self-employed professionals alone in Greece (accountants, dentists, lawyers, doctors, personal tutors and independent financial advisers) was €28 billion or 31% of the budget deficit that year.<ref>Inman, Phillip (9 September 2012) [https://www.theguardian.com/world/2012/sep/09/greece-tax-evasion-professional-classes?CMP=twt_gu Primary Greek tax evaders are the professional classes] The Guardian. Retrieved 6 October 2012</ref>

Greece's "shadow economy" was estimated at 24.3% of GDP in 2012, compared with 28.6% for Estonia, 26.5% for Latvia, 21.6% for Italy, 17.1% for Belgium, 14.7% for Sweden, 13.7% for Finland, and 13.5% for Germany, and is certainly related to the fact that the percentage of Greeks that are self-employed is more than double the EU average (2013 est.).<ref name="Debt Past"/>

The [[Tax Justice Network]] estimated in 2011 that there were over 20 billion euros in [[Switzerland|Swiss]] bank accounts held by Greeks.<ref name="Skai TJN">{{cite web |url=http://www.skai.gr/news/finance/article/182717/20-dis-euro-ehoun-krupsei-oi-ellines-stin-elvetia/ |title=20 δισ. ευρώ έχουν κρύψει οι Έλληνες στην Ελβετία |year=2011  |publisher=[[Skai TV]] |access-date=12 October 2011}}</ref> The former Finance Minister of Greece, Evangelos Venizelos, was quoted as saying, "Around 15,000 individuals and companies owe the taxman 37 billion euros".<ref>{{cite news|last=Boyes|first=Roger|title=Rich greeks pack up their troubles along with their euros|newspaper=The Times}}</ref> Additionally, the TJN put the number of Greek-owned [[Offshore investment|off-shore companies]] at over 10,000.<ref name="Ta Nea TJN">{{cite web |url=http://www.tanea.gr/ellada/article/?aid=4515967 |script-title=el:Υπερδύναμη στις οφ σορ η Ελλάδα |year=2011 |publisher=[[Ta Nea]] |access-date=12 October 2011|language=el|title=Article }}</ref>

In 2012, Swiss estimates suggested that Greeks had some 20 billion euros in Switzerland of which only one percent had been declared as taxable in Greece.<ref>{{Cite news | url=http://www.spiegel.de/international/europe/greece-and-switzerland-set-to-sign-tax-treaty-a-852526.html | title=Greek-Swiss Treaty: Athens Closes in on Wealthy Tax Evaders| newspaper=Spiegel Online| date=28 August 2012}}</ref> Estimates in 2015 were even more dramatic. They indicated that the amount due to the government of Greece from Greeks' accounts in Swiss banks totaled around 80 billion euros.<ref name="The Local ch">{{cite web|title=Greek minister slams Swiss over tax evasion|url=http://www.thelocal.ch/20150624/greek-minister-slams-swiss-over-tax-evasion|publisher=The Local ch|date=24 June 2015}}</ref><ref name="Swissinfo.ch">{{cite web|title=Swiss await Greek input on hidden billions|url=http://www.swissinfo.ch/eng/swiss-await-greek-input-on-hidden-billions/41292816|publisher=Swissinfo.ch|date=25 February 2015}}</ref>

A mid-2017 report indicated Greeks have been "taxed to the hilt" and many believed that the risk of penalties for tax evasion were less serious than the risk of bankruptcy. One method of evasion is the so-called black market, grey economy or shadow economy: work is done for cash payment which is not declared as income; as well, VAT is not collected and remitted.<ref>{{Cite news | url=https://www.nytimes.com/2017/02/18/world/europe/greece-bailout-black-market.html |archive-url=https://ghostarchive.org/archive/20220102/https://www.nytimes.com/2017/02/18/world/europe/greece-bailout-black-market.html |archive-date=2022-01-02 |url-access=limited |url-status=live |title = Greeks Turn to the Black Market as Another Bailout Showdown Looms|newspaper = The New York Times|date = 18 February 2017|last1 = Alderman|first1 = Liz}}{{cbignore}}</ref> A January 2017 report<ref>{{Cite web | url=http://www.dianeosis.org/en/2016/06/tax-evasion-in-greece/ |title = Tax Evasion in Greece – A Study|date = 22 June 2016}}</ref> by the DiaNEOsis think-tank indicated that unpaid taxes in Greece at the time totaled approximately 95 billion euros, up from 76 billion euros in 2015, much of it was expected to be uncollectable. Another early 2017 study estimated that the loss to the government as a result of tax evasion was between 6% and 9% of the country's GDP, or roughly between 11 billion and 16 billion euros per annum.<ref name="keeptalkinggreece.com">{{Cite web|url = http://www.keeptalkinggreece.com/2017/03/23/tax-evasion-in-greece-between-e11bn-e16bn-annually/|title = Tax evasion in Greece between €11bn-€16bn annually|date = 23 March 2017|access-date = 30 August 2017|archive-url = https://web.archive.org/web/20180615055546/http://www.keeptalkinggreece.com/2017/03/23/tax-evasion-in-greece-between-e11bn-e16bn-annually/|archive-date = 15 June 2018|url-status = dead}}</ref>

The shortfall in the collection of VAT (sales tax) is also significant. In 2014, the government collected 28% less than was owed to it; this shortfall was about double the average for the EU. The uncollected amount that year was about 4.9 billion euros.<ref>{{Cite news|date=23 June 2017|title=If Poland Can Fix Tax Fraud, So Can Greece|url=https://www.bloomberg.com/view/articles/2017-06-23/if-poland-can-fix-tax-fraud-so-can-greece|access-date=26 September 2020|website=Bloomberg.com}}</ref> The DiaNEOsis study estimated that 3.5% of GDP is lost due to VAT fraud, while losses due to smuggling of alcohol, tobacco and petrol amounted to approximately another 0.5% of the country's GDP.<ref name="keeptalkinggreece.com"/>

==== Planned solutions ====
Following similar actions by the [[United Kingdom]] and [[Germany]], the Greek government was in talks with [[Switzerland]] in 2011, attempting to force Swiss banks to reveal information on the back accounts of Greek citizens.<ref name="Skai Elvetia">{{cite web |url=http://www.skai.gr/news/finance/article/184756/mehri-to-telos-tou-2011-i-sumfonia-gia-ti-forologisi-ton-katatheseon-stin-elvetia-/ |script-title=el:Μέχρι το τέλος του 2011 η συμφωνία για τη φορολόγηση των καταθέσεων στην Ελβετία |trans-title=Deal to tax Swiss bank accounts to be reached by end of 2011 |publisher=[[Skai TV]] |access-date=30 October 2011|language=el|date=30 October 2011 }}</ref> The [[Minister for Finance (Greece)|Ministry of Finance]] stated that Greeks with Swiss bank accounts would either be required to pay a tax or reveal information such as the identity of the bank account holder to the Greek internal revenue services.<ref name="Skai Elvetia" /> The Greek and Swiss governments were to reach a deal on the matter by the end of 2011.<ref name="Skai Elvetia" />

The solution demanded by Greece still had not been effected as of 2015. That year, estimates indicated that the amount of evaded taxes stored in Swiss banks was around 80 billion euros. By then, however, a tax treaty to address this issue was under serious negotiation between the Greek and Swiss governments.<ref name="The Local ch"/><ref name="Swissinfo.ch"/> An agreement was finally ratified by Switzerland on 1 March 2016 creating a new tax transparency law that would allow for a more effective battle against tax evasion. Starting in 2018, banks in both Greece and Switzerland will exchange information about the bank accounts of citizens of the other country to minimize the possibility of hiding untaxed income.<ref>{{Cite web | url=http://europa.eu/rapid/press-release_MEMO-16-3185_en.htm |title = European Commission - PRESS RELEASES - Press release - EU-Swiss relations}}</ref>

In 2016 and 2017, the government was encouraging the use of [[credit card]]s or [[debit card]]s to pay for goods and services in order to reduce cash only payments. By January 2017, taxpayers were only granted tax-allowances or deductions when payments were made electronically, with a "paper trail" of the transactions that the government could easily audit. This was expected to reduce the problem of businesses taking payments but not issuing an invoice;<ref>{{Cite web | url=http://www.tornosnews.gr/en/greek-news/economy/26979-tax-evasion-safari-in-greek-tourist-spots-snags-major-violators.html |title = Tax evasion 'safari' in Greek tourist spots snags major violators}}</ref> that tactic had been used by various companies to avoid payment of VAT (sales) tax as well as income tax.<ref>{{cite web|url=http://greece.greekreporter.com/2016/12/13/fin-ministry-bill-gives-tax-breaks-to-greeks-making-payments-with-credit-and-debit-cards/|access-date=28 August 2017|title=Fin Ministry Bill Gives Tax Breaks to Greeks Making Payments With Credit and Debit Cards|date=13 December 2016}}</ref><ref>{{cite journal|url=https://www.csmonitor.com/World/Europe/2016/0411/Why-Greeks-swap-of-cash-for-cards-could-end-a-culture-of-tax-evasion|access-date=28 August 2017|title=WORLD EUROPE Why Greeks' swap of cash for cards could end a culture of tax evasion|journal=Christian Science Monitor|date=11 April 2016}}</ref>

By 28 July 2017, numerous businesses were required by law to install a point of sale device to enable them to accept payment by credit or debit card. Failure to comply with the electronic payment facility can lead to fines of up to 1,500 euros. The requirement applied to around 400,000 firms or individuals in 85 professions. The greater use of cards was one of the factors that had already achieved significant increases in VAT collection in 2016.<ref>{{Cite web | url=http://www.ekathimerini.com/220705/article/ekathimerini/business/clear-incentives-for-greater-card-use | title=Clear incentives for greater card use, Nick Malkoutzis &#124; Kathimerini}}</ref>