Monday, December 24, 2012

Greece Will Miss 2012 Tax Reform Targets — EU/IMF Report

by Stelios Bouras

Wall Street Journal

December 24, 2012

Greece will miss tax reform goals set for this year and needs to do more to chase down wealthier tax cheats, a report by the country’s international creditors said Monday.

Greece isn’t seen achieving five out of ten goals set for December in relation to audits and tax collection, the report said, adding that changes to the legal framework and collection methods could give a major boost to revenues.

“Considerable arrears remain on the books — €53 billion ($69.9 billion) — of which most likely 15 to 20% could be paid,” said the report prepared by the International Monetary Fund and the European Union.

Greece could boost revenues by implementing systems that automatically deduct money owed to the state from taxpayer’s banks accounts, the report added.

It comes as Greece prepares to vote next month on a new tax bill long promised to international creditors in an effort to increase budget revenue, simplify the tax system and curb evasion.


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