The “fight” for the presumptive method of taxation is intensifying

Also, on Monday, June 17, the various sectors and other types of mobilization and actions have been decided, to be announced by each organization.

The government

Already, however, after the reports of the Minister of State Makis Voridis for the expenses of the election from the management of the issue of freelancers, Prime Minister Kyriakos Mitsotakis He left open the possibility for possible “partial corrections, if there are some serious injustices” without, however, changing the core of the policy.

In the meantime, the issue was raised in the hand-over process of the Ministry of Finance, where the person in charge of the tax, Haris Theoharis, former Deputy Minister of Finance, left. However, the Minister of National Economy and Finance Kostis Hatzidakis remained unmoved and of course set as a “flag” the change in the way freelancers are taxed.

The message of Stournara

Speaking, however, on Thursday, in context at the international two-day TMEDE conference entitled “Designing Sustainable Strategies of Tomorrow”, its commander TtE K. Giannis Stournaras sent the message about the whole issue. He emphasized that “the reforms will increase the potential growth and income of the Greeks”, recommending that the government own the reforms, while when asked about this he argued against the withdrawal of issues such as self-employment tax. “Is it possible that only others will pay?” asked Mr. Stournaras, in conclusion: “And slowly the tax came in as assumed income. This is the minimum wage of an unskilled worker”. “These are the ones we need to hit”, argued the commander of the Tax Administration, describing tax evasion as a big problem.

In the courts

Meanwhile, based on relevant announcements, such as GSEVEE and the Professional Chamber of Athens Coordinating Committee of Independent Professionals – Scientists – Craftsmen and Merchants, as previously announced in a press conference on June 3, continues on Monday, June 17, 2024, at 12.00, with a legal appeal to the Council of State (The Co) against the new unfair tax law while at the same time organizing a protest outside the courts.

Members of the Coordinating Committee will submit to the Supreme Court Annulment Petitions against Law 5073/2023, which promotes presumptive taxable income for freelancers and scientists. A government decision that, as reported, is mainly aimed at collecting higher taxes and not at trying to limit tax evasion, since large companies remain immune.

Remember that Cancellation Requests challenge the no. A1055/2024 decision of the Governor of AADE, regarding the definition of the procedure for the objection of the minimum annual income from business activity, the period of conducting the audit as well as more specific aspects for the use of the par 3 and 4 of art. 28A of Law 4172/2013 and which constitutes the first regulatory and administrative opposition to its implementation since the passing of the law.

In fact, based on the relevant announcement, the cited reasons for the cancellation are mainly:

1. The opposition to the assumption established by the provisions of articles 15 et seq of Law 5073/2023, on the constitutional principles of the equality of citizens before the public burden, proportionality and the provision of full and effective judicial protection , as it treats freelancers as employees, while it is about different categories of taxpayers, because, after all, the SC itself decides.

At the same time, the challenge of the presumption, through the fixed process of submitting the tax audit, makes the presumption of substance undisputed and changes the meaning, logic and nature of the tax audit.

2. Exceeding the limits with the legislative approval of article 28A par 5 of Law 4172/2013 of no. A.1055/2024 decision of the Governor of AADE, which essentially expands the audit of previous tax years and other tax subjects, beyond income tax.
3. The assumption of minimum annual income, according to article 28A of Law 4172/2013, it is not allowed by the constitution, because it does not involve external indicators or elements directly related to the presumed conclusion, as required by the jurisprudence of the Council of State, but based on comparison of the minimum wages of those who work with a dependent labor relationship, who are under different professional conditions and income compared to those who practice individual business. Afterwards, all the freelancers – members of the agencies that make up the Coordinating Committee will send drafts / models of individual appeals to the Dispute Resolution Division of AADE, where the individual tax returns will be challenged and then the Appeal forms will be distributed beforehand. the competent Administrative Courts of First Instance.

Challenging applications

Based, of course, on what Kostis Hatzidakis talked about in his interview a few days ago regarding the scope of disputing presumptive taxation in the procedure provided by the current law, “until now. we have 255 challenge intentions and 24 completed processes. In other words, if we count the professionals “caught” in the hypothesis, we have the intentions to challenge from 0.6% of professionals and complete challenges from 0.6 per thousand. If we count all the professionals, the completed challenges equal 0.3 per thousand.

The X-ray of statements

Meanwhile, the average tax for one in three taxpayers with a debit settlement has increased by 30% based on data from AADE declarations so far. Specifically, it rose to 1,195 euros from 919 euros last year in the corresponding sample.

It can be recalled that the declarations uploaded by the Taxis amount to 2.3 million from the total of 6.6 million submitted last year, but there is still enough time because the deadline expires on July 26 and 1.3 million declarations have been submitted. submit to it. year automatically through the system.

In detail, from the settlement notes released, the following emerged:

• 50.01% of the submitted declaration is zero tax and amounts to 1,115,374.

• For 21.39% of tax declarations, a tax refund was obtained, which on average reached 311 euros. Based on AADE data, 476,204 taxpayers are entitled to a tax refund with a total amount of 148.3 million euros.

• 28.95% of taxpayers were asked to pay additional tax on income earned last year.

Specifically, for 636,498 declarations the result of the liquidation was a debit, with a total amount of tax amounting to 760,9 million euros. The average tax for these declarations amounts to 1,195 euros, 30% increased compared to the corresponding sample of settlement notes of the previous year with an additional burden only due to the imputed method of taxation of the self-employed.

Taxpayers with debit settlement have the possibility to pay tax in different ways and in more than 8 installments provided by the Ministry of Finance. The legislation gives the possibility to public borrowers to use the regulation set by the Ministry of Finance, while those who pay the tax in a lump sum on July 31 have a 3% discount. This year’s income tax can be paid using a fixed arrangement that offers up to 24 installments which, however, carry interest.

The interest rate reaches 4.34% in 12 installments and 5.84% in 24 installments. To be included in the settlement, no installment of the settlement debt must be overdue. The application for inclusion in the regulation must be completed and submitted electronically together with a relevant responsible declaration.