REVIEW ABOUT TAX EVASION IN GREECE

The article is mainly talk about Tax Evasion in Greece. The text also explain about the scale of tax evasion in Greece, who are and are not paying their taxes, and what can be done to solve the problem. The tax evasion itself is one of the most important problems facing any democratic state. According to the relevant academic literature, there are three parameters that determine the level of tax evasion in an economy. There are the level of tax rates, the likelihood of detection and punishment, and the level of fines imposed.

The exact scale of tax evasion in Greece is obviously unknown. But according to the study, revenue lost due to personal income tax evasion ranges from 1.9% to 4.7% of annual GDP.

And then who are and are not paying taxes? It was generally the rich who were bearing the country's tax burden. Most of them are high-paid workers and big business. Most of the income from income tax comes from them.

While those who avoid taxes are self-employees, small businesses, entrepreneurs, legal entities and large-scale companies. The self-employed and small businesses avoid paying their taxes because the likelihood of detection is very low.

Legal entities evade taxes by the issue of false invoices -a common practice especially in small and medium-sized companies, which aims to both reduce the income tax and the VAT companies need to pay, as well as showing false losses. While, Large Corporation avoid taxes with transfer pricing within the EU and the so-called carousel fraud, which are analyzed in the study, are the most common.

As the problems arise, the writters reccomend about how to solve the problem, yeah even though it could not all be easily implemented in our country, but some could serve as useful examples. Such as : a reduction of tax rates and of emergency taxes on already-taxed income, expanded use of "plastic money" and expansion of electronic invoicing, effective and intensive auditing and effective resolution of tax disputes (through administrative and legal processes), and many others.

After reading the text, I came to know that not only in Indonesia who have complicated problems in the field of taxation, but also other countries. The problem is almost the same, namely tax evasion and many people who choose to avoid taxes, by hiding their property. Various ways to avoid paying large amounts of taxes. And not just rich people or big companies that hide their property, but also for small and self-employed people.

I think this article is very good. The author gives a lot of accurate data so readers know what the tax developments in Greece are like. And the solution given by the author is very possible to do, I think. Although it will be difficult to implement, but some of these solutions have been successfully implemented in other countries. Hopefully the solution can overcome the problems in Greece and Indonesia can also apply it in order to maximize the state revenue for the development of the country.