Greece’s shadow economy: The treasures of darkness

Posted: October 10, 2014 in economy
Tags: , ,

UK Only Article: 
standard article

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The gay divide

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Greece’s shadow economy

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Getting Greeks to pay more tax is not just hard, but risky

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Does that include VAT?

Does that include VAT?

TWO out of three Greek workers either understate their earnings or fail to disclose them to the taxman altogether, according to Stephen Hall, an adviser to the Bank of Greece. Last year an estimated 24% of all economic activity in Greece went undeclared to evade tax and regulation, well above the European average of 19%.
The IMF, which was in Athens this week to check up on Greece’s public accounts, would like to bring more of this activity into the sunlight, to boost government revenues. After a calamitous recession in which the economy shrank by 30%, government debt now stands at 174% of GDP; the budget deficit last year was almost 13% of GDP. But there is a risk that an overly aggressive tax-raising drive will compound the problem.

Greeks, even more than their counterparts …

via Economic Crisis http://ift.tt/1w5bdgR

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