10th November 2017
Many of our blogs have focused on how global authorities are coming down hard on those evading tax payments, but in a constantly changing world mistakes can be made by tax payers and governments alike. For example, in Greece contract professionals can currently benefit through a clause that allows evasion.
A clause that allows evasion?
According to Athens based newspaper, Kathimerini, regulations in Greece allow freelancers to declare lower incomes in order to reduce tax payments as well as contributions to solidarity levies and social security. And it would appear that a large number are currently taking advantage of this, with tax statements revealing that 89% of these individuals declared annual takings of less than €7,000 in 2017.
Added to this, those choosing to falsely declare lower incomes can also benefit as a result of new regulations brought in earlier this year which allows professionals to declare one income for tax purposes and another for pensions contributions.
Change is on the way
Of course, this matter isn’t as simple or clear cut as it might sound and you can rest assured that local authorities are working to prevent freelance professionals from falsely declaring lower incomes. Indeed, tackling tax evasion is the number one priority for the Greek government, so we can expect to see an increase in charges against wrong-doers in the near future. There are also amendments afoot for the regulation which allows the dual reporting of income which will certainly impact the number of professionals choosing to reduce their tax payments while increasing their pensions pot in Greece.
Learn from mistakes
What this example really does demonstrate, however, is that the world of tax is not only complex, but also constantly evolving. As global authorities look to adapt regulations in order to be relevant in a flexible world of work where cross border opportunities are becoming increasingly attractive, international requirements will change. Staying ahead of this ever-shifting world is challenging and recruitment firms could find themselves inadvertently falling foul of the law through no fault of their own.
Recruiters need to have the freedom to get on with the job they do best without the worry of cross-border tax requirements, so why not partner with an expert team that can take away the headache and ensure you and your firm avoid potential fines or criminal charges.