By G. Kouros
A much-heralded draft bill aimed to expand the use of electronic transactions in the previously cash-dominant Greek economy is reportedly in the final stages of completion before submission to Parliament for ratification.
The goal is to implement whatever provisions beginning on the first day of 2017.
As "N" first reported early last month, the pending draft bill will not include a provision allowing businesses to open and manage at least one bank account that will be immune from seizures and confiscations by the tax bureau, social security funds and even private creditors, in some cases. That prospect was nixed after institutional creditors' opposition, even as the Greek government repeatedly pointed out that such a prospect would have dramatically increased electronic transactions -- via credit and debit cards -- and thereby further slashed tax evasion.
Conversely, the sums accumulated by consumers via electronic transactions -- which includes web-banking -- will be calculated for tax write-off and deduction purposes. Special categories of personal spending, such as medical appointments, attorneys' fees etc, will essentially have to be paid via electronic transactions to have any chance of being deducted in income tax returns.
Additionally, counter-incentives - or even fines - are expected for businesses declining to install POS terminals for online transactions.
As "N" previously reported, taxpayers will need to use electronic transactions for between 10 to 20 percent of their annual spending in order to qualify for the tax-free income tax ceiling.
