The Greek government is ready to submit its plans for capital repatriation to the European Commission’s Task Force for Greece. The plan refers to assets derived from undeclared incomes held in banks abroad, which will have the legal right to return in Greece on favourable terms, and aims to give Greek economy a considerable boost.
The plan includes regulations for a small, one-off tax and long-lasting tax exemptions only for those who choose to bring their funds back in Greece so as to use them for investments. Imposing a small tax rate, the Greek government aims to persuade anyone who evades taxation, hiding their capital in the form of real estate, shares, bonds, gold etc, to declare their incomes. All assets from criminal activity of any kind, as well as funds belonging to politicians will be excluded from the regulation.
The European Commission, the European Central Bank and the International Monetary Fund insist that favorable measures would lead anyone with undeclared incomes to take their money out of Greece and then use the regulations to bring them back on favourable terms.
The Ministry of Finance, however states that tax administration changes have set legal safety valves to unveil anyone who attempts tax evasion and those who chooses not to become subject to these regulations.
Major fines and high tax rates will be imposed to those who choose not to repatriate undeclared funds in Greek banks. Tax rates will drop for repatriated funds that have been deposited abroad for a long period.
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