Minister says tax evaders are being caught

 

THE inland revenue department (IRD) has imposed some €50 million in additional taxes on around 3,000 people and companies caught tax evading, the finance minister said yesterday.

The cases include architects, mechanics, lawyers and doctors, among others, who had already declared and paid some €53 million in taxes. 

Closer scrutiny over the past three years revealed they owed the state almost double the amount.

“This is a clear attempt at tax evasion,” Finance Minister Kikis Kazamias said. “It was determined, and they recognised, that they should pay around €50 million more.”

The minister’s announcement is a response to government workers’ unions who have repeatedly said that the state needs to crack down on tax evaders instead of focusing on cutting the state payroll in its bid to shore up the economy.

The minister however, pointed out that the two issues go together.

“I do not accept the position of ‘do this first to be allowed to do the other.’ My approach is do one and the other,” Kazamias said.

The minister also said that instructions have been given to expedite and widen scrutiny of similar tax files and pledged the government readiness to provide the IRD with additional personnel and technical support if necessary.

On top of that the state is trying to improve the link between departments – IRD, VAT, company registrar and social insurance – to improve its ability to track down evaders.

He said the government will also examine whether to publish the names of tax evaders. 

The minister could not immediately say how many, if any, out of the 3,000 were prosecuted but added that the aim was not to send people to jail.

“What is important to me at this point is a result that brings cash to state coffers and the degree of compliance,” Kazamias said.

 

 

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